Stock prices of publicly traded window and door companies substantially outpaced the broader market in March, as the W&D Stock Index increased 15.8 percent compared to a 1.8 percent increase for the S&P 500. These gains boosted the 12-month return on the W&D Index to 88.2 percent compared to a 60.8 percent increase for the S&P 500. Building products stocks have outperformed the market as mortgage rates continued to be low and projected construction data for 2021 continues to increase as market participants looked past indicators that showed construction activity was impacted by winter weather. Economists have continued to increase their forecast for the spring selling season with significant new single-family construction growth forecasted in the upcoming months, which supports further growth for this year and beyond. Overall, growth in the construction market during COVID-19 has accelerated, which will support valuation and M&A opportunities in building products in the months to come.
Stock chart March 2021
Source: Lincoln Financial
