Materials/Construction Industry Wed 2025-03-26: 6Weak strength rating (Weakened/0)

Brian Degracia

26 Mar 2025 • 3 min read

Materials/Construction Industry 2025-03-26 weakened but not enough to change rating and remains at 6Weak after the past week. Residential Construction (Homebuilders) was unchanged at 7Weaker. The largest sub-industry General Building Materials was also unchanged and is at 6Weak.

This post is organized as follows:

I. Introduction
II. Market Environment
III. Industry Background
IV. Industry/Sub-industry Recent Performance
V. Stock Details

I. Introduction

This post provides detail on the Materials/Construction industry - specifically:

🔹 An objective measurement of industry strengthening and weakening so you can objectively compare strength and weakness across/within industries and sub-industries.

🔹 A listing of stocks rated 1Strongest and 9Weakest (highest/lowest rating of 9 levels) by sub-industry, saving you significant time finding stocks that may be prone to making bigger moves faster. Stronger stocks have less overhead resistance, weaker stocks are prone to “pops” from bargain hunting and short-covering yet due to preceding weakness are also prone to falling far and fast.

II. Market Environment

This system seeks to understand the current market environment before considering sector, industry, sub-industry, and stock-level strength. There is no guarantee this objective measurement will remain either favorable to longs (tailwinds present) or unfavorable (headwinds present). The critical factor is this acknowledges the clear influence market factors have on the levels below it and lays the groundwork for subsequent principle-based decision-making.

The current market/sector environment is providing a TAILWIND.

The Market Strength Score changed to positive ("Risk ON") at+5% as of Friday, March 14, 2025.

The current strength score is +32% as shown below. The upper bound for this score is +100% so, while of course not guaranteed that will happen, there is room to rise. There is no way to determine the amount of index points that would be associated with an increase to +100%.

Here is the corresponding Sector Risk Gauge.

III. Industry Background

Largest of 8 sub-industries (74 stocks, average 9):

General Building Materials (23 stocks)
Residential Construction (15 stocks)
Heavy Construction (12 stocks)
Waste Management (9 stocks)

Top 10 Market Caps: WM/Waste Management Inc, RSG/Republic Services Inc, CARR/Carrier Global Corporation, WCN/Waste Connections Inc, FAST/Fastenal Company, DHI/D.R. Horton Inc, PWR/Quanta Services Inc, LEN/Lennar Corp Cl A, VMC/Vulcan Materials Co, MLM/Martin Marietta Materials Inc

IV. Industry Recent Performance - 6Weak Weakened/0 = Headwind

The following summarizes this week's positive/negative performance and major outliers (greater than +10% and lesser than -10%) and the past 10 weeks ratings and changes for the Materials/Construction sub-industries.

V. Stock Details

The following provides a listing of all Materials/Construction industry stocks in order of 1) sub-industry, 2) strongest-to-weakest strength rating, then 3) highest to lowest return this week. This is preceded by a summary of the proportion of 1Strongest to 9Weakest stocks.