Skyline Corporation

StockStory highlights Champion Homes as a standout industrials stock with exciting potential, while advising caution on Graco and XPO. Champion Homes achieved exceptional annual revenue growth of 14.7% over the last two years, driven by market share gains, and its earnings per share grew faster than revenue thanks to share buybacks, with a return on invested capital of 37.9%. In contrast, Graco posted only 2.1% annual revenue growth and flat earnings per share over the same period, with diminishing returns on capital. XPO saw 2.8% annual revenue growth, a below-peer gross margin of 19.8%, and a low free cash flow margin of 1.8% over five years.

Meredith Whitney, CEO of Meredith Whitney Advisory Group, says the 21st Century ROAD to Housing Act will dramatically benefit the manufactured housing industry. She expects President Trump to ultimately sign the bill, which removes an outdated requirement for a chassis on manufactured homes, saving about $10,000 per unit. Whitney notes that manufactured housing is 35 to 50 percent cheaper than site-built housing and that HUD is also proposing legislation to allow multi-level manufactured homes. One industry association estimates annual shipments could rise from about 100,000 to 500,000 units, benefiting companies like Clayton Homes, Champion Home, and Sky.