Simpson Manufacturing Co., Inc. (SSD)

(A Top Pick May 31/22, Down 16.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SSD triggered its stop at $90. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 16%, when combined with previous buy recommendations.

Stockchase Research Editor: Michael O'Reilly This manufacturer of wood and concrete construction products recently reported earnings 38% above analyst expectations and is again reiterated as a TOP PICK. Its latest European acquisition is accretive to the bottom line and is helping support a 26% ROE. The company did add long term debt for the acquisition, but the anticipated interest expense is well within their cash reserve position. We continue to recommend a stop loss at $90, looking to achieve $146 -- upside potential over 35%. Yield 0.9% (Analysts’ price target is $146.33)

Stockchase Research Editor: Michael O'Reilly The new CEO has accelerated the company's expansion into new high growth areas, including the OEM auto market. The company's traditional construction and manufacturing sectors helped propel revenue growth over 40% last year. Recent earnings beat expectations by 30% and support a solid ROE of 26%. It trades at 15x earnings, along side its peers. We like that is has continued to build cash reserves, while buying back stock. It pays a small dividend backed by a payout ratio under 15% of cash flow. We recommend setting a stop loss at $90, looking to achieve $146 -- upside potential over 30%. Yield 0.96% (Analysts’ price target is $146.33)

(A Top Pick Mar 15/22, Down 10.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SSD has triggered its stop at $105. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 1%, when combined with the previous buy recommendation.

Stockchase Research Editor: Michael O’Reilly We reiterate SSD, a designer and distributor of wood and concrete building construction products, as a TOP PICK. It has worked hard to expand markets into Europe along with Asia and Australia. Their products are directly benefiting from the home construction and DIY trends and offers global diversification. Recently reported earnings beat expectations by 67% and the company is posting an impressive 24% ROE. We like that cash reserves continue to grow, while the company buys back shares. It pays a small dividend backed by a payout ratio under 20% of cash flow. We continue to recommend a stop at $105, looking to achieve $147 — upside potential over 26%. Yield 0.87% (Analysts’ price target is $146.67)

(A Top Pick Nov 03/20, Up 21%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SSD is progressing well. We now recommend trailing the stop (from $80) to $105. If triggered, this would all but guarantee a net investment return of 12%.

Stockchase Research Editor: Michael O'Reilly SSD designs and sells wood and concrete building construction products. It has global markets including North America, Europe, Asia and Australia. Their products are directly benefiting from the home construction and DIY trends and offers global diversification. They just reported sales up 17% over the year, gross margins were 47%, and earnings were up 59%. All 1700 Lowes stores will begin carrying the company's products in Q4. It pays a small dividend backed by a 27% payout ratio. We would trade this with a stop-loss at $80, looking to target a $112 technical target -- 20% upside. Yield 1.0% (Analysts’ price target is $105.00)