Several companies in the building products industry on Monday rose from multiyear lows as homebuilding stocks climbed on an analyst upgrade. The stocks had been under pressure as rising borrowing costs making homeownership more expensive.
Allegion ( NYSE: ALLE ), the maker of security products for homes and businesses, rose 1.7% to $91.24 a share at 12:54 p.m. ET after hitting a 2 ½-year low of $89.01 earlier in the session.
Zurn Elkay Water Solutions ( NYSE: ZWS ) advanced by 1.9% to $26.57 after touching a 14-month low of $25.81 as the market opened.
Two makers of swimming pool equipment moved in opposite directions. Hayward Holdings ( NYSE: HAYW ) rose 2.1% to $10.29 after hitting an all-time low of $9.99 on Monday morning.
Latham Group ( NASDAQ: SWIM ) slumped by 1.9% to $4.77 after grazing its all-time low of $4.75. Latham priced a secondary offering of stock at $19.50 a share in January.
Companies in the building industry are coping with a rise in mortgage rates to the highest in 14 years. With inflation remaining stubbornly high , the Federal Reserve has worked to raise borrowing costs to help lift the value of the dollar. The central bank this week likely will raise the target federal funds rate by 0.75 percentage point.
KeyBanc today upgraded homebuilder stocks on their positive relative performance. The rating changes included upgrades of D.R. Horton ( DHI ), Lennar ( LEN ), PulteGroup ( PHM ), Meritage Homes ( MTH ) and TopBuild ( BLD ) to Overweight and KB Homes ( KBH ) and Toll Brothers ( TOL ) to Sector Weight.
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Building products stocks rise from multiyear lows as homebuilders advance