Wall Street Thinks These 2 Housing-Related Stocks Are Moving in Different Directions: Here's the 1 to Buy

Company Analysis - Owens Corning is outperforming its end markets, leading to analysts raising their price targets for the stock, with Barclays increasing it to $190 from $160 and RBC Capital raising it to $201 [4][6] - The company's roofing segment saw a 7% increase in sales in the first quarter, contrasting with a 2% decline in the insulation segment and an 11% decline in its composites business [15] - Owens Corning's acquisition of Masonite adds complementary building products to its portfolio, enhancing its market position [10] Industry Insights - The overall housing market remains sluggish, particularly in the repair and remodeling sector, but there are strengths in the single-family new residential construction market due to affordability issues and low inventory of existing homes [9][11] - Analysts are increasingly optimistic about the roofing, insulation, and composites sectors, particularly for Owens Corning, while sentiment is declining for Stanley Black & Decker [12][16] - The housing market conditions are affecting Owens Corning and Stanley Black & Decker in opposite ways, with Owens Corning benefiting from repair and remodeling activities, while Stanley Black & Decker faces challenges [16][20] Challenges and Strategies - Stanley Black & Decker is under pressure due to weak demand, leading to a disappointing inventory-to-sales ratio, despite efforts to reduce inventory [3][8] - The company has outlined a need to invest between $300 million to $500 million to regain market share, indicating deeper issues beyond just weak demand [8][18] - Stanley Black & Decker's restructuring plan aims to cut costs by $2 billion by 2025, which includes reducing product ranges and consolidating facilities [13]