As many investors know, it is not always easy finding the right stock at the right price when you are ready to make a purchase. However, the recent downturn in the market has created a plethora of opportunities, several of which are in the construction industry. With this in mind, let’s take a look at three stocks that are now trading at inexpensive forward valuations compared with their five-year averages, so you can decide which would fit best in your portfolio.
1. SNC-Lavalin Group Inc.
SNC-Lavalin Group Inc. (TSX:SNC) is one of the leading engineering and construction groups in the world. At today’s levels, its stock trades at 19.5 times fiscal 2015’s estimated earnings per share of $2.00 and 15.2 times fiscal 2016’s estimated earnings per share of $2.56, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 41.9.
In addition, the company pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, giving its stock a 2.6% yield.
2. Bird Construction Inc.
Bird Construction Inc. (TSX:BDT) is one of Canada’s largest general contractors. At current levels, its stock trades at 14.1 times fiscal 2015’s estimated earnings per share of $0.85 and 16 times fiscal 2016’s estimated earnings per share of $0.75, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 19.
Also, the company pays a monthly dividend of $0.0633 per share, or $0.7596 per share annually, which gives its stock a 6.3% yield.
3. Badger Daylighting Ltd.
Badger Daylighting Ltd. (TSX:BAD) is North America’s leading provider of non-destructive hydrovac excavation services. At today’s levels, its stock trades at 29.5 times fiscal 2015’s estimated earnings per share of $0.65 and 14.1 times fiscal 2016’s estimated earnings per share of $1.36, the latter of which is inexpensive compared with its five-year average price-to-earnings multiple of 17.5.
Additionally, the company pays a monthly dividend of $0.03 per share, or $0.36 per share annually, giving its stock a 1.9% yield.
Should you buy one of these construction stocks today?
SNC-Lavalin Group, Bird Construction, and Badger Daylighting are three of the most attractive investment options in the construction industry today. Foolish investors should strongly consider beginning to scale in to positions in one of them.
