J.P. Morgan recommends shifting investments in the housing market
- J.P. Morgan recommends stocks that benefit from new residential construction
- Sales of existing single-family homes have declined for eight consecutive months
- Stanley Black & Decker stock downgraded to Sell, while TopBuild and Installed Building Products upgraded to Buy
- Analyst price targets for TopBuild and Installed Building Products are below current trading prices
- Both TopBuild and Installed Building Products stocks have been outperforming expectations
According to J.P. Morgan, the housing market is experiencing a tale of two end markets. While new residential construction is rebounding, repair and remodeling activity remains stagnant. Sales of existing single-family homes, an indicator of demand for overhauls, have been declining for eight consecutive months. In response to these trends, J.P. Morgan downgraded shares of Stanley Black & Decker to Sell, while upgrading TopBuild and Installed Building Products to Buy. The analyst price targets for TopBuild and Installed Building Products are below their current trading prices, indicating potential for further growth. Both stocks have been outperforming expectations, with TopBuild gaining about 113% year to date and Installed Building Products gaining about 95%. J.P. Morgan believes that these stocks will continue to rise in value.
Factuality Level: 7
Factuality Justification: The article provides information from J.P. Morgan’s report and quotes from home-building and building products analyst Michael Rehaut. It also includes data on sales of existing single-family homes and new single-family housing starts. The article mentions the downgrading of Stanley Black & Decker shares and the upgrading of TopBuild and Installed Building Products shares. It also provides information on analyst ratings and price targets for these stocks. Overall, the article presents factual information and quotes from industry experts.
Noise Level: 3
Noise Justification: The article provides a clear analysis of the housing market and the recommendations from J.P. Morgan. It includes relevant information on the performance of specific stocks and the analyst’s price targets. However, there is some filler content at the beginning of the article and unnecessary information about the text-to-speech technology.
Financial Relevance: Yes
Financial Markets Impacted: Home construction stocks
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the performance and recommendations for stocks in the home construction industry, indicating financial relevance. However, there is no mention of any extreme event or its impact.
Public Companies: Stanley Black & Decker (SWK), TopBuild (BLD), Installed Building Products (IBP)
Key People: Michael Rehaut (home-building and building products analyst)
Reported publicly:
www.marketwatch.com 
