Tuesday, June 5, 2012

Investopedia: Quanex Is Going To Take Some Time

There's still not that much joy to be found in the residential building world. While the superstores Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) have seen improvement in same-store sales and companies like Louisiana-Pacific (NYSE:LPX) are well off the lows, the actual building starts numbers still aren't good. That means investors considering the shares of Quanex Building Products (NYSE:NX) need to have some patience. While this company has built impressive share in markets like window and door components, demand still just isn't that strong. Quanex does seem undervalued on the basis of its potential long-run free cash flow, but with so much of that growth coming in the foggy future the risk here is above average.

Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Quanex-Is-Going-To-Take-Some-Time--NX-HD-LOW-LPX0605.aspx

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