UFP Industries, Inc. UFPI has been exploring new markets and enhancing its product portfolio through regular buyouts as well as innovative products. Solid U.S. residential market, strong demand for repair and remodeling activities along with a stable balance sheet bode well.In the year-to-date period, its shares have gained 33.7%, outperforming the Zacks Building Products - Wood industry’s 18.7% rally. The outperformance can primarily be attributed to the company’s solid earnings surprise history. UFP Industries’ earnings surpassed the Zacks Consensus Estimate in nine of the trailing 10 quarters.Earnings estimates for 2021 have moved up 15.6% over the past 60 days, indicating an 83.3% year-over-year growth. This trend signifies bullish analyst sentiments, indicating robust fundamentals and the expectation of further outperformance in the near term.Image Source: Zacks Investment ResearchYet, declining lumber prices, higher material, labor and transportation costs along with declining DIY demand are pressing concerns for this Zacks Rank #3 (Hold) company. These headwinds are compelling investors to hold the stock for a while despite robust fundamentals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Factors Driving GrowthUFP Industries has been following a systematic inorganic strategy to expand market reach, boost profitability and strengthen its product portfolio. On Apr 29, UFP Industries announced that one of its subsidiaries has acquired Minneapolis, MN-based Endurable Building Products, LLC. Apart from accretive acquisitions, the company is poised to benefit from rising demand for repair and remodeling activities in the quarters ahead. UFP Industries’ continuous efforts to introduce new products will also likely give a boost to its performance. For the first and second quarters of 2021, new product sales grew an impressive 58% and 61% year over year, respectively. In June, it launched an innovation accelerator initiative that will help UFP Industries identify new product opportunities, rapidly design prototype and test them to increase the company’s speed to market. Encouragingly, it remains focused on achieving annual new product sales of at least $548 million in 2021.Declining mortgage rates have been driving the U.S. residential market of late. Also, with more work-from-home and stay-at-home orders amid the pandemic, demand for repair and remodeling activities has increased many folds over the last few quarters. Greater-than-expected demand for home improvement products has been benefiting the company. This has been a boon for UFP Industries and companies like Louisiana-Pacific Corporation LPX, Rayonier Inc. RYN and Weyerhaeuser Company WY in the Zacks Building Products – Wood industry.These factors are allowing UFP Industries to reward its stockholders and maintain financial position. The company keeps on distributing dividends over the past several years on the back of a stable balance sheet. In second-quarter 2021, it paid $9 million dividends, reflecting an increase of 20% year over year. The company ended second-quarter 2021 with approximately $288 million liquidity, including $44.3 million cash and cash equivalents.ConcernsAfter record high lumber prices until the first half of the second quarter, the market started declining gradually. Although increasing lumber prices benefited the Retail segment, the same hurt Industrial and Construction segments. A totally different situation is expected to be seen in second-half 2021, wherein falling lumber prices are likely to impact the Retail segment heavily.DIY demand also remained soft as professionals are still very busy, while others are enjoying vacations and travel. The company is also witnessing higher material and labor costs. Deckorators are also witnessing higher resin and transportation costs. Tech IPOs With Massive Profit Potential In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names. For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way… If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November. With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.See Zacks Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UFP Industries, Inc. (UFPI): Free Stock Analysis Report Weyerhaeuser Company (WY): Free Stock Analysis Report LouisianaPacific Corporation (LPX): Free Stock Analysis Report Rayonier Inc. (RYN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research