| All-America Research Team Hall of Famer Ivy Zelman makes it three years in a row at No. 1, for a total of 11 first-team appearances since 1999. “She has the best and broadest contacts in the industry,” insists one backer. Zelman, 46, has listed Sherwin-Williams Co. among her top picks for 2012; shares of the Cleveland-based maker of coatings and paint vaulted 61.9 percent in the first eight months — and she remains bullish. “Demand for domestic architectural coatings will increase 4 to 5 percent in 2012, followed by 6 to 7 percent annual growth over the next three years,” she says. Another winner was Bloomfield Hills, Michigan–based PulteGroup. Although it more than doubled in value year-to-date through August, from $6.31 to $13.68, “the stock remains our top pick among homebuilders, with an expected two- to three-year return of more than 120 percent,” Zelman asserts. Earnings drivers include the strong housing recovery, reduced construction costs and “robust cash flow” — none of which have yet to “fully flow through the income statement,” she adds. |
Consumer – Homebuilders & Building Products: First
October 16, 2012
