Mixed Impact From Storms for Homebuilders, Materials Firms
After back-to-back hurricanes, there will be disruptions and opportunities in construction, but we don't expect changes to our fair value estimates.
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Mentioned: Canfor Corp (CFP)
, Norbord Inc (OSB)
, Summit Materials Inc (SUM)
, Martin Marietta Materials Inc (MLM)
, Weatherford International PLC (WFTLF)
, Louisiana-Pacific Corp (LPX)
, Vulcan Materials Co (VMC)
Jeremy Glaser: In the wake of Hurricanes Harvey and Irma, many are wondering what the impact on the housing market is going to be. We asked Morningstar analysts to give their take, both in the short and long term for the homebuilders and the building materials sector.
Brian Bernard: Let's start with the headwinds. I think the first knee-jerk reaction is how much it's going to cost the homeowners to repair damaged homes. The thing is that the homeowners do actually insure homes that are in progress, so there's not going to be really any kind of financial burden from that. Really, the headwind is going to come from delayed deliveries and sales.
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Brian Bernard does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.