4 Construction Stocks Poised For A Q3 Earnings Beat

Our research shows that for stocks with this combination, the chances of a positive earnings surprise are as high as 70%.

Winning Stocks

For investors seeking to adopt this strategy, we have highlighted four construction stocks that may stand out this season.

Our first choice is Owens Corning (OC - Free Report), engaged in the business of composite and building materials systems. The company delivered a positive earnings surprise in each of the trailing four quarters, with an average beat of 20.17%. For the third quarter, the Zacks Consensus Estimate for earnings is pegged at $1.26 a share.

For the upcoming release, the company has an Earnings ESP of +0.55% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company is set to report third-quarter results on Oct 25 before the opening bell.

Secondly, we picked an integrated forest products company with substantial timber resources Potlatch Corporation (PCH - Free Report). The company topped earnings estimates in three of the trailing four quarters with an average beat of 41.16%. It looks poised to beat expectations in the third quarter as well. The company carries a Zacks Rank #2 and has an Earnings ESP of +1.43%. The Zacks Consensus Estimate is pegged at 88 cents per share.

Potlatch is scheduled to report third-quarter results on Oct 23 after the closing bell.

Our third choice is a producer of wood-based panels, Norbord Inc. (OSB - Free Report).

Last quarter, this company delivered a negative earnings surprise of 0.90% but surpassed estimates in two of the trailing four quarters, with an average beat of 5.10%. The Toronto, Canada headquartered company carries a Zacks Rank #3 and has an Earnings ESP of +0.81%. The Zacks Consensus Estimate is pegged at $1.23 per share.

Norbord will likely to announce third-quarter 2017 results on Oct 27.

Lastly, Louisiana-Pacific Corporation (LPX - Free Report), a leading manufacturer of building materials and engineered wood products in the United States, Canada, Chile, and Brazil, also seems to be a solid bet.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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