(C) Reuters. 4 Companies Benefiting from Falling Lumber Prices
With the steep decline in lumber prices, many homebuilding and furniture companies are expected to benefit by resuming projects that were put on hold due to high lumber prices. So, it could be rewarding to bet on shares of Tri Pointe Homes (NYSE:TPH), Haverty Furniture (NYSE:HVT), Hovnanian (HOV), and Hooker Furniture (NASDAQ:HOFT) that should see costs decline.Lumber prices skyrocketed earlier this year as its demand soared with the strong housing market. This, along with an increase in renovating and upgrading home interiors, coupled with lower production at lumber mills, drove up prices.
However, with the reopening of the economy based on solid progress on the vaccination front, renovation and DIY projects have taken a backseat as people are returning to outdoor activities. Sawmills have picked up the pace of the output, easing the lumber shortage. These factors led to lumber prices plunging more than 40% in June.
As a result, it could be wise to bet on shares of Tri Pointe Homes, Inc. (TPH), Haverty Furniture Companies, Inc. (HVT), Hovnanian Enterprises, Inc. (NYSE:HOV), and Hooker Furniture Corporation (HOFT) that are expected to benefit from the falling lumber prices.
4 Companies Benefiting from Falling Lumber Prices
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