In this article, we discuss the 5 best lumber stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Lumber Stocks to Buy Now.
5. Boise Cascade Company (NYSE: BCC)
Number of Hedge Fund Holders: 16
Boise Cascade Company (NYSE: BCC) is an Idaho-based company that makes and sells wood products. It was founded in 1957 and is ranked fifth on our list of 10 best lumber stocks to buy now. The company’s shares have returned more than 71% to investors over the past year. The wood products marketed by the company are used in construction of homes, repair or remodeling, as well as light commercial and industrial purposes. The lumber, plywood and other items sold by the firm are used as building materials.
On May 6, Boise Cascade Company (NYSE: BCC) posted earnings results for the first quarter of 2021, reporting earnings per share of $3.76, beating market expectations by $1.14. The revenue over the period was $1.8 billion, up 55% year-on-year.
On March 12, investment advisory Bank of America downgraded Boise Cascade Company (NYSE: BCC) stock to Underperform from Neutral with a price target of $54 on the back of fears of plywood import impacting the housing market in the Americas.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Boise Cascade Company (NYSE: BCC) with 205,203 shares worth more than $12.2 million.
4. UFP Industries, Inc. (NASDAQ: UFPI)
Number of Hedge Fund Holders: 16
UFP Industries, Inc. (NASDAQ: UFPI) is a Michigan-based lumber company founded in 1955. It is placed fourth on our list of 10 best lumber stocks to buy now. The stock has returned more than 50% to investors over the course of the past year. The company sells wood-related products in North America, Europe, Asia, and Australia. It markets outdoor living products, garden products, and engineered wood products, among others. The firm has a market cap of over $4.5 billion and posted more than $5 billion in revenue last year.
UFP Industries, Inc. (NASDAQ: UFPI) declared quarterly earnings on April 21, reporting earnings per share of $1.67, beating market expectations by $0.79. The revenue over the period was $1.8 billion, up 77% year-on-year.
UFP Industries, Inc. (NASDAQ: UFPI) is a great stock for income investors. In February, the firm raised its dividend by 20%. On March 30, investment advisory Stifel gave the stock a Buy rating with a price target of $75.
At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $171 million in UFP Industries, Inc. (NASDAQ: UFPI), down from 19 in the preceding quarter worth $118 million.
3. Rayonier Inc. (NYSE: RYN)
Number of Hedge Fund Holders: 18
Rayonier Inc. (NYSE: RYN) is a Florida-based real estate investment trust founded in 1926. It is ranked third on our list of 10 best lumber stocks to buy now. The company’s shares have offered investors returns exceeding 43% over the past twelve months. The company owns and operates timberlands in the United States and New Zealand. It has business interests in real estate in addition to the wood and lumber markets. The company has a market cap of over $5 billion and posted more than $859 million in revenue last year.
In quarterly earnings results, posted on May 5, Rayonier Inc. (NYSE: RYN) reported a revenue of close to $180 million for the first three months of 2021, up more than 25% year-on-year but missing market estimates by $20 million.
Falling lumber prices have hit timberland real estate investment trust in recent weeks, with Rayonier Inc. (NYSE: RYN) falling 0.9% in value on May 17. This comes after a record year-long rally that saw many lumber stocks climb to 52-week highs in early May.
Out of the hedge funds being tracked by Insider Monkey, London-based firm Impax Asset Management is a leading shareholder in Rayonier Inc. (NYSE: RYN) with 8.9 million shares worth more than $287 million.
In its Q3 2020 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Rayonier Inc. (NYSE: RYN) was one of them. Here is what the fund said:
“Third Avenue has long championed enterprises with sound business practices run by aligned control groups that exhibit strong stewardship. Within Third Avenue’s real estate strategy, this oftentimes leads the Fund to “pass” on investments in companies with uncertain environmental liabilities, business models that could be deemed predatory, and corporate governance structures that are stacked against key stakeholders. Consequently, the select-set of real estate and real estate-related business that make it into the Third Avenue Real Estate Value Fund represent some of the true industry leaders in respect to their ESG practices, including Rayonier, that own more than ‘2.7 million’ acres of timberlands and sequester more carbon than any other privately-held enterprises globally (to our knowledge)— an underappreciated attribute that may ultimately have incremental value through a carbon-credit initiative or even strategic value for larger enterprises seeking to offset emissions.”
2. Enviva Partners, LP (NYSE: EVA)
Number of Hedge Fund Holders: 7
Enviva Partners, LP (NYSE: EVA) is a Maryland-based wood company founded in 2004. It is placed second on our list of 10 best lumber stocks to buy now. The company’s shares have returned more than 43% to investors over the past year. The company is most famous for making and selling sustainable wood pellets, a coal alternative gaining popularity as environmental concerns grow over coal mining. The company aims to grow more trees and eventually replace coal as an energy source.
On April 28, Enviva Partners, LP (NYSE: EVA) posted earnings results for the first quarter of 2021, reporting earnings per share of -$0.27, missing market predictions by $0.04. The revenue over the period was $241 million, up close to 18% year-on-year.
Enviva Partners, LP (NYSE: EVA) is a great income stock. On April 28, the firm declared a quarterly dividend of $0.785 per share, an increase of 0.6% from the previous dividend. The forward yield was 6.34%.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $250 million in Enviva Partners, LP (NYSE: EVA), down from 9 in the preceding quarter worth $252 million.
1. DIRTT Environmental Solutions Ltd. (NASDAQ: DRTT)
Number of Hedge Fund Holders: 4
DIRTT Environmental Solutions Ltd. (NASDAQ: DRTT) is a Canada-based company that offers interior software and construction solutions. It was founded in 2003 and is ranked first on our list of 10 best lumber stocks to buy now. The stock has returned more than 143% to investors over the course of the past twelve months. The firm software interior construction technology as well as interior construction solutions for walls, ceilings, and floors, among others. It uses technology to help out with construction efforts.
On May 5, DIRTT Environmental Solutions Ltd. (NASDAQ: DRTT) posted earnings results for the first quarter of 2021, reporting earnings per share of -$0.15, missing market predictions by $0.10. The revenue over the period was close to $30 million, down 28% year-on-year.
On June 8, DIRTT Environmental Solutions Ltd. (NASDAQ: DRTT) announced that it had opened a manufacturing facility in South Carolina in an investment worth over $18 million to cater to customers better on the East Coast of the United States.
At the end of the first quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $51 million in DIRTT Environmental Solutions Ltd. (NASDAQ: DRTT), down from 5 in the preceding quarter worth $39 million.
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.
