The Zacks Building Products - Miscellaneous industry continues to benefit from sustained investment in infrastructure, power, grid modernization, data centers and advanced manufacturing, supporting healthy project pipelines. Resilient repair and remodeling activity, along with growing demand for premium, energy-efficient and innovative building products, is also helping companies maintain pricing power and support growth. Against this backdrop, United Rentals Inc. (URI Quick QuoteURI - Free Report) , Owens Corning (OC Quick QuoteOC - Free Report) , Everus Construction Group, Inc. (ECG Quick QuoteECG - Free Report) , Frontdoor, Inc. (FTDR Quick QuoteFTDR - Free Report) and Argan, Inc. (AGX Quick QuoteAGX - Free Report) are positioned to capitalize on these favorable trends.

However, the industry continues to face elevated input costs, tariff-related uncertainty and an unpredictable macroeconomic environment, which are pressuring margins, complicating sourcing decisions and weighing on customer spending. High interest rates and persistent housing affordability challenges are also restraining new residential construction, keeping demand uneven across several building-product categories.

Industry Description

The Zacks Building Products - Miscellaneous industry primarily comprises manufacturers, designers and distributors of home improvement and building products like ceiling systems, doors, windows, flooring and metal products. Some industry players provide solutions to rehabilitate the aging infrastructure, primarily pipelines in the wastewater, water, energy, mining and refining industries. The companies also manufacture expansion joints and structural bearings, ventilation products, ground-mounted solar racking and commercial greenhouses, as well as mail storage (solutions including mailboxes along with package delivery products). Companies in this industrial cohort also rent out equipment to a diverse customer base, including construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities.

4 Trends Shaping the Future of the Building Products Industry

Infrastructure, Power and Data Center Investments Support Demand: Large-scale investments in power generation, grid modernization, transportation infrastructure and AI-driven data centers remain the strongest demand drivers for the industry in 2026. Utilities continue expanding generation capacity while transmission, distribution and electrification projects are accelerating. At the same time, hyperscale data centers, semiconductor facilities and advanced manufacturing projects require specialized building materials, engineered products and construction solutions. Public infrastructure spending, reshoring initiatives and long-duration industrial projects are also supporting healthy order pipelines and backlogs, providing companies with improved revenue visibility despite weakness in some traditional construction markets.

Repair & Remodeling and Product Innovation Remain Resilient: Although new residential construction remains uneven, repair and remodeling activity continues to provide a stable source of demand. Aging housing stock, ongoing maintenance requirements and consumers' focus on improving existing homes continue to support spending on roofing, insulation, plumbing fixtures, coatings, fastening systems and other building products. Manufacturers are also benefiting from premium product offerings, energy-efficient solutions, sustainable materials and digital design tools that help expand market share and improve pricing. Long-term industry prospects are also supported by greater emphasis on energy efficiency, building performance and higher-value products. Stricter efficiency requirements and customer demand for better thermal, acoustic and functional performance are encouraging the use of advanced insulation, specialty ceilings and other differentiated building products. Innovation in commercial interiors, architectural products and building efficiency solutions is creating additional growth opportunities, while restructuring and productivity initiatives are supporting profitability.

Cost Inflation, Tariffs and Macroeconomic Uncertainty Persist: The industry continues to face a challenging cost environment in 2026. Manufacturers are dealing with persistent inflation in raw materials, transportation, labor and procurement, while higher wages and ongoing investments in manufacturing capacity continue to pressure operating expenses. At the same time, evolving U.S. tariff policies and uncertainty surrounding imported construction materials have complicated sourcing strategies and increased the risk of additional input-cost inflation. Companies are responding through selective price increases, supply-chain diversification, productivity initiatives and restructuring programs, but the ability to fully pass higher costs on to customers varies across end markets.

Macroeconomic uncertainty adds another layer of risk. Elevated interest rates, cautious commercial investment and affordability challenges in residential construction have caused customers to delay purchasing decisions and adjust project timelines. Many contractors and distributors are also managing inventory conservatively, reducing order visibility for manufacturers. While infrastructure, power and data center investments remain supportive, uncertainty over trade policy, inflation and the pace of economic growth continues to weigh on business confidence, making demand forecasting and capital allocation more difficult across the industry.

Residential Construction Remains Under Pressure: The biggest challenge for the industry in 2026 continues to be the sluggish residential construction environment. Elevated mortgage rates, affordability constraints, higher home prices and cautious consumer spending have kept both new housing demand and discretionary renovation activity below historical levels. Builders remain selective with new project launches, while customers continue delaying large purchases until financing conditions improve. Although repair and remodeling demand has been relatively resilient, weaker housing starts continue to pressure volumes across several residential-focused product categories, limiting broader industry growth.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Building Products – Miscellaneous industry is a 35-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #103, which places it in the top 42% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since June 2026, the industry’s earnings estimates for 2026 and 2027 have increased to $4.22 per share from $4.14 and $4.79 per share from $4.77, respectively.

Before highlighting a few stocks that investors may consider for their portfolios, let’s take a look at the industry’s recent market performance and valuation trends.

Industry Lags S&P 500 & Sector

The Zacks Building Products – Miscellaneous industry has underperformed the Zacks S&P 500 Composite and the broader Zacks Construction sector over the past year.

Over this period, the industry has lost 11.8%, below the broader sector’s 6.2% decrease. Meanwhile, the Zacks S&P 500 Composite has gained 15.3% over the same period.

One-Year Price Performance

Industry's Current Valuation

On the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing building products’ stocks, the industry is trading at 15.85X versus the S&P 500’s 19.65X and the sector’s 17.93X.

Over the past five years, the industry has traded as high as 19.35X, as low as 10.58X and at a median of 15.85X, as the chart below shows.

Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500

Industry’s P/E Ratio (Forward 12-Month) Versus Sector

5 Building Product Stocks to Buy Now

We have selected five stocks from the Zacks universe of building products that have solid growth prospects.

Argan: Based in Arlington, VA, Argan provides EPC and related services for power and renewable energy projects, along with industrial construction and telecom infrastructure services. The company has been benefiting from rising demand for power infrastructure tied to electrification, data-center expansion, domestic manufacturing and grid reliability needs. The company is well positioned in complex natural gas-fired power projects, where limited competition and its execution track record support new opportunities. Expansion of fabrication capacity should strengthen exposure to data-center and industrial projects, while continued hiring and training can increase project execution capacity. Argan is also pursuing complementary acquisitions, with ValCor expected to broaden Teledata capabilities, expand geographic reach and create cross-selling opportunities.

Argan, a Zacks Rank #1 (Strong Buy) stock, has gained 51.7% over the past year. AGX has seen an upward estimate revision for fiscal 2027 earnings to $13.56 per share from $12.60 over the past 30 days, depicting analysts’ optimism for the company’s prospects. The estimated figure indicates 39.2% year-over-year growth for fiscal 2027 on 46.4% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 44.2%. It currently holds a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price and Consensus: AGX

Everus: Based in Bismarck, ND, Everus delivers contracting services across the United States. Everus is benefiting from strong demand across commercial, industrial, data center, semiconductor, utility and other end markets, supported by a diversified customer and geographic base. Long-standing customer relationships, a strong execution track record and a skilled workforce are helping the company capture repeat business and new project opportunities. Growth is also supported by expanding modular and prefabrication capabilities, which improve project efficiency and strengthen customer relationships. Geographic expansion, cross-selling opportunities and disciplined acquisitions such as SE&M and Epsilon further broaden Everus’ capabilities, customer reach and exposure to attractive end markets.

Everus, a Zacks Rank #1 stock, has gained 35.9% over the past year. ECG’s earnings estimates have increased for 2026 to $5.25 per share from $4.39 over the past 60 days. The estimated figure indicates 32.9% year-over-year growth for 2026 on 23.4% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 57%. It also carries a VGM Score of B.

Price and Consensus: ECG

Owens Corning: The company provides residential and commercial building products globally and is headquartered in Toledo, OH. Owens Corning has been benefiting from its strong branded building-products portfolio, expanding contractor and distributor relationships and an integrated go-to-market strategy across Roofing, Insulation and Doors. Demand for premium roofing systems, repair and replacement activity, energy-efficient construction and high-performance insulation products provides additional support. The company is also benefiting from nonresidential opportunities such as data centers and reindustrialization, improving European construction markets and broader Doors distribution. Investments in manufacturing capacity, innovation, productivity, AI-enabled customer engagement and network optimization should further strengthen long-term growth.

Owens Corning, a Zacks Rank #1 stock, has lost 14.2% over the past year. Nonetheless, OC has seen an upward estimate revision for 2026 earnings to $9.94 from $9.48 per share over the past 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with an average surprise being 8.2%.

Price and Consensus: OC

Frontdoor: Headquartered in Memphis, TN, this company provides home warranties and new home builder warranties across the United States. Frontdoor has been gaining from stronger direct-to-consumer acquisition, improved marketing efficiency and higher conversion through AI-enabled search, content and sales tools. Its multi-brand strategy and integration of 2-10 create additional cross-selling and customer-growth opportunities. Greater local engagement with real estate agents is helping expand warranty attachment, while an improved member experience, technology-enabled service, autopay and targeted retention programs support renewals. Beyond home warranties, Frontdoor is expanding share of wallet through HVAC upgrades, with opportunities to extend the model into additional trades such as appliances over time.

Frontdoor, a Zacks Rank #2 (Buy) stock, has gained 20.1% over the past year. FTDR has seen an upward estimate revision for 2026 earnings to $4.67 from $4.48 per share over the past 60 days. The estimated figure indicates 14.2% year-over-year growth for 2026 on 5.1% revenue growth. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise being 33.5%. It currently holds a VGM Score of B.

Price and Consensus: FTDR

United Rentals: Headquartered in Stamford, CT, this company is the largest equipment rental company in the world. United Rentals is benefiting from a deepening pipeline of large, complex projects across data centers, power, infrastructure, LNG, airports, pharmaceuticals and semiconductor facilities. Its broad specialty portfolio and one-stop-shop model are strengthening customer relationships and allowing the company to capture more spending across projects. Diversified end-market exposure, strong fleet availability and disciplined capital deployment further support growth. Technology investments, including AI-enabled tools, should enhance pricing, productivity and operating efficiency. Additional upside could come from a recovery in local markets, continued specialty expansion and strategic acquisitions that broaden the company’s product and geographic reach. 

United Rentals, a Zacks Rank #2 stock, has gained 6.7% over the past year. URI has seen an upward estimate revision for 2026 earnings to $48.70 from $46.70 per share over the past 60 days. The estimated figure indicates 15.8% year-over-year growth for 2026 on 9.7% revenue growth. The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed on the other two, with an average of 1%. It currently holds a VGM Score of B.

Price and Consensus: URI