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