JP MORGAN: These Are The 18 Best Stocks For Playing The US Housing Recovery

Tom LeeJP Morgan’s Tom Lee

Photo: Bloomberg TV

JP Morgan’s chief U.S. equity strategist Tom Lee is very bullish on the U.S. stock market right now. One of the big reasons he cites: he thinks the stage is set for a housing recovery in the United States after home prices appear to have bottomed in recent months.Lee expects the housing recovery to provide a tailwind for U.S. stocks. In a report published last week, he writes that “we are in the early stages of a residential construction rebound and see at least 2-3 years equity outperformance.”

In the report, Lee names 18 stocks investors can look at in order to gain exposure to the housing recovery story. The stocks are a leveraged play on everything from homebuilding to land development to home improvement and rental properties.

Lowe's

Ticker:
LOW

JPM Target Price:
$29.00

Industry:
Home Furnishing and Retail

Source: JPMorgan

Home Depot

Ticker:
HD

JPM Target Price:
$57.00

Industry:
Home Furnishing and Retail

Source: JPMorgan

Terex Corp.

Ticker:
TEX

JPM Target Price:
$27.00

Industry:
Housing Infrastructure

Source: JPMorgan

Caterpillar

Ticker:
CAT

JPM Target Price:
$109.00

Industry:
Housing Infrastructure

Source: JPMorgan

KB Home

Ticker:
KBH

JPM Target Price:
$13.00

Industry:
Homebuilders

Source: JPMorgan

PulteGroup

Ticker:
PHM

JPM Target Price:
$15.00

Industry:
Homebuilders

Source: JPMorgan

Ryland Group

Ticker:
RYL

JPM Target Price:
$29.00

Industry:
Homebuilders

Source: JPMorgan

Weyerhaeuser Co.

Ticker:
WY

JPM Target Price:
N/A

Industry:
Timber

Source: JPMorgan

Genworth Financial

Ticker:
GNW

JPM Target Price:
$9.00

Industry:
Banks and Financials

Source: JPMorgan

Bank of America

Ticker:
BAC

JPM Target Price:
$11.50

Industry:
Banks and Financials

Source: JPMorgan

Wells Fargo

Ticker:
WFC

JPM Target Price:
$42.00

Industry:
Banks and Financials

Source: JPMorgan

St. Joe Co.

Ticker:
JOE

JPM Target Price:
N/A

Industry:
Land Plays

Source: JPMorgan

Lennox International

Ticker:
LII

JPM Target Price:
$44.00

Industry:
Building Electrical & Mechanical

Source: JPMorgan

Watts Water Technologies

Ticker:
WTS

JPM Target Price:
$33.00

Industry:
Building Electrical & Mechanical

Source: JPMorgan

Georgia Gulf Corp.

Ticker:
GGC

JPM Target Price:
$41.00

Industry:
Building Materials

Source: JPMorgan

Owens Corning

Ticker:
OC

JPM Target Price:
$34.50

Industry:
Building Materials

Source: JPMorgan

UDR

Ticker:
UDR

JPM Target Price:
$28.00

Industry:
REITs- Apartments

Source: JPMorgan

Essex Property Trust

Ticker:
ESS

JPM Target Price:
$29.00

Industry:
REITs- Apartments

Source: JPMorgan

The global economic outlook remains dark >

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