StockCall Scans Gafisa and Standard Pacific: Residential Construction Companies Look for Better Times

Feb 21, 2013, 08:00 ET from StockCall.com

LONDON, February 21, 2013 /PRNewswire/ --

With the recent uptick in the housing sector, construction stocks are looking up. The overall trend in the industry is in positive mode and is well illustrated by recent strong financial numbers reported by leading companies within the sector. Gafisa S. A. (NYSE: GFA) announced higher-than-expected unit deliveries for the fourth quarter. Standard Pacific Corp. (NYSE: SPF) also reported higher margin and better-than-expected quarterly results. The company plans to boost its margins by concentrating on high-end markets. Both stocks performed well last year and are expected to continue performing in the same trend. StockCall has taken an interest in these companies and you can now sign up to download the free technical research on Gafisa and Standard Pacific at http://www.stockcall.com/registration  

Standard Pacific Targets High-End Markets

Standard Pacific reported $419.8 million in revenue for its fourth quarter, handily beating consensus estimates of $376 million. Its EPS for the quarter stood at $1.20. The company was expected to report its earnings per share at 7 cents per share. Standard Pacific is expected to maintain this streak and report its first quarter revenue at $314.9 million. Register to download the free technical analysis on Standard Pacific Corp. at

http://www.StockCall.com/SPF022113.pdf  

The company is expanding its scope and plans to concentrate on move-up buyer segment. For catering to these strata, it has recently acquired 675 acres of land in New Tampa. Standard Pacific is all set to benefit from a rebound in the housing sector. The stock is up 11 percent on a YTD basis. However, the momentum is likely to continue.

Standard Pacific also improved its margins. Its stock is up 7 percent this year. On the back of its strong results and future plans, the stock is expected to perform well. The improvement in housing sector will provide additional fillip to the stock. Standard Pacific is mainly operational in metropolitan areas in various states and thus is well placed to seize emerging opportunities in the construction sector. The stock grew 124 percent in 2012 and is likely to repeat this performance in the current year as well.

Gafisa on the Path to Recovery

Gafisa is all set to take a piece of the growing residential construction pie. The company announced strong fourth quarter results and is rumored to be in the process of disposing of its Alphaville unit. The sale of the unit will infuse necessary funds for the company. Gafisa had acquired 100 percent stake in the unit in 2012. Sign up today to read the free research report on Gafisa S.A. at http://www.StockCall.com/GFA022113.pdf  

Gafisa is mainly operational in Brazil and is more open to challenges prevalent within Latin America. The company specializes in residential building construction and focuses on high-end and luxury segment. It also deals in lower income housing, though currently this part of its business is not performing so well. However, the company is optimistic that the unit will start turning in profit by the end of this year.

The stock is down 32 percent in the past 52 weeks, while it fell 10 percent so far this year. However, keeping in view its strong quarterly results, the stock may recoup some of its losses in the near future. Gafisa's stock also provides a good opportunity to geographically diversify one's portfolio.

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