Published on 12 May 2023 on Zacks via Yahoo Finance

5 Construction Stocks with Strong Upside Potential

Construction stocks are up 14.4% so far this year. Yet there is reason to believe that there is further upside in the cards.

It isn’t that the impending economic slowdown won’t have an impact, however. After all, more than half the companies are either exposed to home construction, or directly involved in it. Therefore, interest rates, mortgage rates, household savings, disposable income and such things will of course have an impact.

But the unemployment rate has ranged between 3.4% and 3.7% from Mar 2022 to Mar 2023 and any number below 5% is considered full employment. Moreover, consumer confidence actually improved in April. The percentage of consumers surveyed that think business conditions are good is more than the percentage thinking that they’re bad and the second group has seen a nice decline even from last month. Similarly, those thinking that jobs were plentiful were nearly 4x those that said they weren’t, with the second group down slightly from last month.