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February Window and Door Stocks Lag Broader Market

Stock prices of publicly traded window and door companies lagged the broader market in February, as the W&D Stock Index decreased 10.8 percent compared to a 3.8 percent decrease for the S&P 500. These losses pulled in the 12-month return on the W&D Index to 23.3 percent compared to a 12.2 percent increase for the S&P 500.

Building products stocks and the broader market sharply pulled back in February as Russian aggression in the Ukraine were coupled with muted annual same store sale growth guidance for 2022 from the Home Depot (the largest constitute in the index). Continued supply chain stress and inflation reports have left investors nervous that the Federal Reserve has little room to operate, especially if aggression in the Ukraine continues. However, building products investors continue to expect a strong 2022 outlook driven by double-digit growth in both new construction and repair and remodeling spending.

Source: Lincoln International

Stock chart 2/28/2022