Stock prices of publicly traded window and door companies underperformed the broader market in January, as the W&D Stock Index increased 6.2 percent compared to a 9.2 percent increase for the S&P 500. These advances drove the 12-month return on the W&D Index to negative 10.3 percent compared to a 8.8 percent decrease for the S&P 500. Building products stocks and the broader market rallied in January, delivering one of the best openings to a calendar year in over 20 years. Investor sentiment has started to shift such that equity investors believe there is a plausible case the Fed successfully tames inflation while avoiding a hard landing in the economy. With two consecutive months of gains in builder confidence, there is increasing momentum in building products companies as these businesses continue to execute on their backlogs and drive robust performance from new construction and repair and remodel markets.
Source: Lincoln International LLC
Stock Chart January 2023
