Although new home construction is at an all-time low, the same can’t be said for commercial building construction and the exchange traded fund (ETF) that follows the sector. The PowerShares Dynamic Building & Construction (PKB) ETF is up 22.0% year-to-date. PKB’s top holding at 5.8% is Fluor (FLR), which is likely the biggest factor behind the ETF’s success. Fluor shares have increased almost 65% this year, as the company won a series of big contracts, management’s profit target climbed and analysts’ earnings estimates crept higher, according to the Associated Press.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.