Materials & Construction 2023-09-19: DOWN -1 to AVERAGE strength rating (5th strongest of 9 levels), previous move was also DOWN

Brian Degracia

19 Sep 2023 • 3 min read

Materials & Construction for the trading week ended 2023-09-19, industry weakened as 0/8 sub-industries strengthened and 1/8 sub-industries weakened.

SUMMARY

Performance

Bottom Line: weakened 2 strength levels in 3 weeks
Context:
- weakening short/mid-term vs. longer-term.
- Positive stocks 1 week/4 weeks < 50% the 6 month total.

1 week positive/negative stocks ratio is WEAKER than both 6 Mos and 4 weeks.

Other Notes:‌‌
6 Months
LMB/Limbach Holdings Inc (General Contractors) +97%
STRL/Sterling Infrastructure Inc (Heavy Construction) +96%
MTRX/Matrix Service Co (Heavy Construction) +92%
VTNR/Vertex Energy Incorporated (Waste Management) -39%
EVA/Enviva Inc (Lumber) -76%

4 Weeks
VTNR/Vertex Energy Incorporated (Waste Management) +24%
MTRX/Matrix Service Co (Heavy Construction) +19%
ASPN/Aspen Aerogels Inc (General Building Materials) +19%
HOV/Hovnanian Enterprises A (Residential Construction) +16%
MEG/Montrose Environmental Group Inc (Waste Management) -18%
EVA/Enviva Inc (Lumber) -39%

1 Week‌‌
EVA/Enviva Inc (Lumber) -15%

Background

Largest/most material of 8 sub-industries (83 stocks total, average 10 stocks/sub-industry):‌‌
25 stocks General Building Materials‌‌
16 stocks Residential Construction‌‌
12 stocks Heavy Construction‌‌
12 stocks Waste Management

10 Biggest Market Cap stocks: ‌‌WM, CARR, RSG, DHI, WCN, LEN, FAST, PWR, VMC, MLM

DETAIL: 1 Week Performance Review

Status

Strengthened: 0/8 sub-industries‌‌
Weakened: 1/8 sub-industries

Strongest at Stronger rating/3rd strongest of 9 levels:‌‌
8 stocks General Contractors

Weakest at Weak rating/6th strongest of 9 levels:‌‌
3 stocks Cement‌‌
4 stocks Lumber‌‌
3 stocks Manufactured Housing

Detail Charts: Sub-Industry and Stock

10-Week Week-by-Week Industry/Sub-industry Strength Comparison‌‌
What: recent week-by-week strength changes for the industry and each underlying sub-industry‌
‌Why: objective measurement of strengthening and weakening enabling comparison within and across industries and sub-industries

As Residential Construction continues its slide, there is a lot of other red on this screen.

Strongest and Weakest Stocks‌‌
What: stocks currently rated Strongest/Weakest (highest/lowest of 9 strength ratings)
‌‌Why: most interesting stocks for available capital because

the Strongest may be meme-stock mania candidates prone to breakouts, and
the Weakest may be prone to large bottom-fishing/short-covering-driven pops... and may also be primed for bigger and faster falls.

(Not guaranteed and not a recommendation - weak stocks in weakening sub-industries may be better shorts than high-flyers.)