Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

4 Building Material Stocks Busting Out to New Highs

Stock MarketsApr 22, 2021 01:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 4 Building Material Stocks Busting Out to New Highs

In addition to rising demand driven by the economy’s reopening, President Biden’s proposed infrastructure spending should further buoy the growth of building material companies in the United States. So, it could be wise to bet now on Carrier (CARR), Owens (OC), GMS (NYSE:GMS), and Quanex (NYSE:NX). We think they are well positioned to capitalize on the industry tailwinds.While the housing market has remained hot amid the COVID-19 pandemic, companies producing and supplying building materials were severely hit by the public health crisis, due to the precipitous decline in construction activities it caused. However, because the U.S. economy is reopening at a faster-than-expected pace, the demand for building materials has started to increase this year. Furthermore, the expected positive impact of President Biden’s proposed infrastructure spending on the industry is driving investors’ interest. According to Fitch Ratings, “Passage of an infrastructure bill would be a credit positive for U.S. buildings material issuers but financial implications will depend on the actual size of the bill and take time to materialize.”

Investor interest in this space can be partly evidenced by the SPDR Homebuilders ETF’s (XHB) 28.3% returns so far this year, compared to SPDR S&P 500 ETF Trust’s (SPY) 11.3% gains over this period.

The industry’s prospects look bright worldwide. With mass vaccination drives gradually containing the spread of the virus, increasing activity in the commercial, infrastructure, and residential segments is likely. The global building materials market is expected to grow to $343 billion in 2025 from $272 billion in 2020.

Continue reading on StockNews

4 Building Material Stocks Busting Out to New Highs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email