If you like fundamentally boring businesses, Encore Wire (NASDAQ:WIRE) should be up your alley. While there's actually a lot that goes into making and maintaining a top business in the space, electrical wiring for residential, commercial, and industrial construction isn't the sort of business that is going to get a lot of attention. Nevertheless, Encore Wire has managed to blend strict operational discipline with a surprising amount of innovation into a solid company within this overlooked sector.
As is the case with so many stocks now, the post-election rally has made this a problematic stock from a valuation perspective. Even my more aggressive methodologies top out in the mid-$40s for fair value, making this an iffy prospect for serious outperformance. That said, I really admire how management runs this company, and if you can live with the volatility of a business tied to the cyclical construction market(s) and commodity input prices, it is a name worth considering at a better price.
Behind Encore Wire's Sometimes Messy Numbers Is A Good Company