11 Best Cement and Construction Materials Stocks to Buy Now

9. Boise Cascade Company (NYSE:BCC)

Number of Hedge Fund Holders: 22

Boise Cascade Company (NYSE:BCC) is a manufacturer and distributor of building materials. The company operates two divisions, Building Materials Distribution and Wood Products Manufacturing. It came into being by the merger of Cascade Lumber Company of Yakima, WA, and Boise Payette Lumber Company of Boise, ID. Boise Cascade serves diversified customer segments, ranging from independent dealers to large chains and home centers.

Boise Cascade has a leadership position in the building products industry throughout North America by being among the largest producers of engineered wood products and plywood. An industry-leading scale, strong relationships and distribution rights with leading brands, deep customer relationships, and nationwide distribution capacities are some of the competitive advantages setting Boise Cascade apart in the building materials industry. The firm’s complementary divisions have been strategically aligned and have demonstrated market share growth together.

Amidst elevated mortgage rates and economic uncertainties, Boise Cascade Company (NYSE:BCC) demonstrated steady execution in both businesses in Q2. It reported net income of $112.3 million on sales of $1.8 billion. Although the demand environment was challenging and remains uncertain, management is confident to deliver good results through the second half of the year.

The demographics are also turning out to be on the side of Boise Cascade Company (NYSE:BCC). These include a large cohort entering the homebuying age and an undersupply of homes due to decades of underbuilding. Furthermore, locked-in low-rate mortgages and record-high home equity levels are driving strength in repair and remodeling.