CHICAGO, Jan. 10, 2013 /PRNewswire/ -- Stocks featured in this week's Zacks Industry Rank analysis include Potlatch Corp. (Nasdaq:PCH), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Hovnanian (NYSE: HOV) and Lennar Corp. (NYSE: LEN).
Zacks Industry Rank Analysis is written by John Blank, Ph.D, Chief Equity Strategist, Zacks.com.
Construction Jobs on the Rise
What did I find most encouraging about the December ADP private payroll and Federal government jobs reports?
- A revival in construction jobs. Although ADP said rebuilding after Superstorm Sandy likely lifted their December construction jobs gain, this is nevertheless the seventh month in a row for adds to construction. The +39,000 ADP job adds in construction was the best number since February 2006.
- ADP financial activities were up +14,000, a 16th month straight positive run. This was the best financial activities job add number since March 2006. This pair of sectors moves together: one finances projects, the other builds them. What a nice positive feedback loop. It takes the overall macro economy system up in a cyclical fashion.
A serial pick-up in jobs means strong underlying profits. Firms don't hire workers unless they make strong profits by doing so. This led me to the Construction Sector to look for stock picks.
(1) Potlatch Corp. (Nasdaq:PCH) is an integrated forest products company with substantial timber resources. It is engaged principally in the growing and harvesting of timber and the manufacture and sale of wood products, printing papers and pulp and paper products. Its timberlands and all of its manufacturing facilities are located within the continental United States (Zacks Rank #1).
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2564.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=2565.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.