Zacks Highlights Building Product Stocks Poised for Growth

Argan, Simpson Manufacturing, Everus Construction and Construction Partners stand out amid industry challenges

Apr. 10, 2026 at 12:19pm

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A photorealistic studio still life featuring a polished metal gear, a glass beaker, and a sleek, angular block of concrete arranged on a clean, white background, conceptually representing the strategic positioning and technological innovation driving growth in the building products industry.Amid industry headwinds, leading building products firms leverage operational excellence, strategic acquisitions, and emerging trends to drive long-term growth.Pleasanton Today

The Zacks Building Products - Miscellaneous industry is facing near-term pressure from factors like tariffs, inflation, and a softening residential market. However, the long-term outlook remains favorable, with increased federal infrastructure spending, growth in AI and energy-related construction, and companies focused on operational excellence and strategic acquisitions. Zacks highlights four industry players - Argan, Simpson Manufacturing, Everus Construction, and Construction Partners - as well-positioned to capitalize on these positive trends.

Why it matters

The building products industry plays a crucial role in supporting the nation's infrastructure, housing, and commercial construction needs. Despite current headwinds, the long-term growth potential remains strong, driven by government investment, technological advancements, and companies adapting their strategies to navigate the challenges.

The details

The building products industry is grappling with persistent uncertainty around tariffs, inflation, labor availability, and interest rates, which is slowing commercial construction activity. However, increased federal spending on infrastructure projects, the rapid growth of AI and cloud computing driving data center construction, and companies' focus on cost efficiencies, digital adoption, and strategic acquisitions are expected to support industry growth going forward.

  • The Federal Reserve left interest rates unchanged at its March 17 to March 18, 2026 meeting, maintaining the benchmark range at 3.5-3.75%.
  • Argan ended fiscal 2026 with a record backlog of about $2.9 billion.
  • Construction Partners ended 2025 with a record backlog of $3.2 billion.
  • Everus ended 2025 with a record backlog of $3.2 billion.

The players

Argan, Inc.

An Arlington, VA-based company that provides EPC and related services for power and renewable energy projects, along with industrial construction and telecom infrastructure services.

Simpson Manufacturing Co., Inc.

A Pleasanton, CA-based company that provides structural connection solutions for wood, concrete, and steel globally.

Everus Construction Group, Inc.

A Bismarck, ND-based company that delivers contracting services across the United States.

Construction Partners, Inc.

A Dothan, AL-based civil infrastructure firm focused on building and maintaining roadways across eight U.S. states.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.