As lumber prices are rising, investors have piled money into lumber stocks. The recent volatility in the market provides a great opportunity to pick up shares on the dip. That's why Patrick Ryan is recommending Boise Cascade (NYSE:BCC), Canfor (TSX:CFP) Corporation (CFPZF), and West Fraser Timber (WFG).Lumber prices tailed off last week after a considerable increase in the preceding months. However, the cost of lumber is jumping once again. As an example, 2x4s sold this past week for a record high of $1,640 per 1k-ft. board. This price level represents a climb of 340% in the past year. It is pretty clear that Americans and others cannot get enough lumber for housing, home improvement projects, and other needs.
If you are not invested in lumber stocks, you still have time to establish a position in one or more companies in the lumber space. The gigantic millennial age cohort is spearheading the housing push, ramping up demand for lumber all the more. Millennials are the largest age cohort in the United States, meaning the demand for housing-related lumber should hold strong for at least another half-decade, if not longer.
The question is not whether lumber will be in demand for the foreseeable future. Rather, the question is which specific stocks are the best to invest in to make money from the ever-spiking demand for wood. Three of the top lumber stocks are as follows: Boise Cascade (BCC), Canfor Corporation (CFPZF), and West Fraser Timber (WFG).