Michael RehautJ.P. Morgan |
Michael Rehaut, who takes the No. 2 spot for a third straight year, “does a good job of looking at the field and saying, ‘This is probably the best horse,’” according to one buy-side enthusiast. The J.P. Morgan analyst believes he has identified winners in Toledo, Ohio–based building materials provider Owens Corning and residential construction concern KB Home of Los Angeles, both of which he has rated overweight, primarily on valuation. In late August, he says, the former’s stock was trading at just 5.8 times estimated 2013 earnings before interest, taxes, depreciation and amortization — which “limits the downside.” Rehaut upgraded KB Home from neutral in early August on improving sales and the belief that the company’s earnings per share in fiscal 2013 will be near the break-even point, compared with a projected EPS loss of $1.06 for the year ending November 30. That improvement, Rehaut declares, “is currently not reflected in the stock’s valuation.” |
Consumer – Homebuilders & Building Products: Second