Core Viewpoint - Knife River (KNF) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance Indicators - Knife River is projected to earn $3.72 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 15.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Knife River has risen by 6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - Knife River's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1: Market Overview - Several construction sector stocks have been added to the Zacks Rank 1 (Strong Buy) list, indicating a positive outlook for the industry [1] - The broader market is starting to stabilize and rebound, creating opportunities in the construction sector [1] Group 2: Knife River Corporation (KNF) - Knife River Corporation has increased over +100% since its spin-off from MDU Resources Group in 2023 [2] - The company has shown increased profitability and is ranked in the top 40% of over 250 Zacks industries [3] - KNF trades at a forward earnings multiple of 19.7X, with EPS expected to rise 10% in fiscal 2024 and another 13% in FY25 to $4.05 per share [3] Group 3: MasTec (MTZ) - MasTec benefits from increased infrastructure spending in the US and is a leading company in engineering, building, installation, and maintenance [5] - The company is in the top 6% of all Zacks industries, with its stock climbing +42% year to date [6] - Total sales are projected to increase 4% this year and another 8% in FY25 to $13.45 billion, with high double-digit EPS growth forecasted for FY24 and FY25 [6] Group 4: Meritage Homes (MTH) - Meritage Homes operates in the Building Products-Home Builders Industry, which is in Zacks' top 7% [6] - The company trades at a forward earnings multiple of 8.1X, with robust bottom line growth expected to expand 5% in FY24 and another 5% in FY25 to $21.98 per share [6] - Despite a recent dip of -12%, MTH is still up +2% year to date and has gained +30% over the last year [7] Group 5: Conclusion - The construction sector presents abundant opportunities due to infrastructure-related activities and steady demand for new homes post-pandemic [7] - Recent market volatility has created better buying opportunities for highly-ranked construction sector stocks [7]

Group 1: Royal Caribbean Cruises (RCL) - Royal Caribbean Cruises primarily serves the contemporary, premium, and deluxe segments of the cruise vacation industry [1] - The company has a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 2.4% over the last 60 days [1] - The price-to-earnings ratio (P/E) is 0.43, significantly lower than the industry average of 1.61 [2] - The company possesses a Value Score of A [2] Group 2: Meritage Homes (MTH) - Meritage Homes is a leading designer and builder of single-family homes [1] - The company also carries a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 5.1% over the last 60 days [1] - The price-to-earnings ratio (P/E) is 8.73, compared to the industry average of 10.60 [3] - The company possesses a Value Score of B [3] Group 3: Knife River Corporation (KNF) - Knife River Corporation mines aggregates and markets crushed stone, sand, gravel, and related construction materials [1] - The company holds a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its next year earnings has increased by 1.5% over the last 60 days [1] - The price-to-earnings ratio (P/E) is 19.70, slightly lower than the industry average of 20.70 [4] - The company possesses a Value Score of B [4]

1 KNIFE RIVER Second Quarter 2024 Results Presentation August 6, 2024 NYSE Forward Looking Statements The information in this presentation highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historical in nature are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reason ...

Knife River (KNF) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 16.10%. A quarter ago, it was expected that this construction materials company would post a loss of $0.80 per share when it actually produced a loss of $0.84, delivering a surprise of -5%. Over the last four quarters, the ...

Core Viewpoint - Investors in the Building Products - Miscellaneous sector should consider Knife River (KNF) as a potentially undervalued stock compared to James Hardie (JHX) [1] Valuation Metrics - Knife River has a P/B ratio of 3.32, while James Hardie has a P/B ratio of 7.72, indicating that KNF is more favorably valued in terms of book value [3] - KNF's forward P/E ratio is 20.30, compared to JHX's forward P/E of 21.82, suggesting that KNF may be a better value option [5] - The PEG ratio for KNF is 2.68, while JHX has a PEG ratio of 2.85, further supporting the notion that KNF is more attractively priced relative to its expected earnings growth [5] Earnings Outlook - Knife River has a stronger earnings outlook compared to James Hardie, which is reflected in their respective Zacks Ranks of 2 (Buy) for KNF and 5 (Strong Sell) for JHX [4] Value Grades - Based on various valuation metrics, Knife River holds a Value grade of B, while James Hardie has a Value grade of D, indicating that KNF is perceived as a better value investment [9]

Core Insights - The article compares two stocks, Knife River (KNF) and James Hardie (JHX), to determine which presents a better value opportunity for investors [4][5]. Valuation Metrics - KNF has a P/B ratio of 3.19, while JHX has a P/B ratio of 7.17, indicating that KNF is valued more favorably in terms of its book value [3]. - The forward P/E ratio for KNF is 19.56, compared to JHX's 20.26, suggesting that KNF may be a more attractive option based on earnings expectations [6]. - KNF's PEG ratio is 2.58, while JHX's PEG ratio is 2.65, indicating that KNF has a slightly better valuation when considering expected earnings growth [6]. Zacks Rank and Style Scores - KNF has a Zacks Rank of 2 (Buy), while JHX has a Zacks Rank of 4 (Sell), reflecting a more favorable earnings outlook for KNF [5][7]. - The Style Score Value grade for KNF is B, while JHX has a Value grade of C, further supporting the notion that KNF is the better value investment [9].

Group 1 - Knife River (KNF) has experienced a downtrend with a 15% decline over the past four weeks due to excessive selling pressure, but it is now in oversold territory, indicating a potential turnaround [1] - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating oversold conditions [2] - The RSI for KNF is currently at 28.8, suggesting that heavy selling may be exhausting itself, which could lead to a price rebound [5] Group 2 - There is strong consensus among sell-side analysts that KNF will report better earnings than previously predicted, with the consensus EPS estimate increasing by 0.6% over the last 30 days [6] - KNF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7]

Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Knife River (KNF) and James Hardie (JHX) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and es ...

Core Viewpoint - Knife River (KNF) is experiencing significant selling pressure, having declined 9.6% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory, supported by analysts predicting better earnings than previously expected [1]. Group 1: Stock Performance and Indicators - The stock's Relative Strength Index (RSI) reading is at 29.61, indicating it is in oversold territory, which suggests a potential for a trend reversal [5]. - A stock is generally considered oversold when its RSI falls below 30, making it a useful indicator for identifying potential entry points for investors [2][3]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus earnings per share (EPS) estimate for KNF has increased by 0.6%, indicating a positive trend in earnings revisions [6]. - There is strong agreement among sell-side analysts regarding the upward revision of earnings estimates, which typically correlates with price appreciation in the near term [6]. Group 3: Zacks Rank and Market Position - KNF holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, further supporting the potential for a turnaround [7].