Jim Cramer - Mad MoneyBuilders FirstSourceBLDRBUY ON WEAKNESSDec 04, 2023
It consolidates in a fragmented industry. Is up 1000% in the past 5 years. Was pressured by rising rates, but shares have rebounded since its last quarter. Rates have flatten and will decline while housing demand is huge.
Shares have been climbing because it trades at a ridiculously low PE to Home Depot. Also, BLRD targets professional homebuilders, not amateur DIYers, and the pros are doing well for Home Depot.
The S&P's #4 stock of 2023, up nearly 160%. It flew under the radar in 2023, but he sees a lot of room for growth (more stores) in 2024. They supply homebuilders to build homes. Outperformed Home Depot and Lowes (those customers cut spending in 2023).
Home builders lately have been hit by supply shortages. They merged with a company to become the leader in building materials. Has popped from $20 last summer to $52 now.
It consolidates in a fragmented industry. Is up 1000% in the past 5 years. Was pressured by rising rates, but shares have rebounded since its last quarter. Rates have flatten and will decline while housing demand is huge.