How producers are performing at the end of the third quarter

By George Reddin, Rob Mineo and Evan Coughlin| September 25, 2023

In our latest review, we see that the Construction Materials Index (CMI) continues to outperform the major indices – although the gap has normalized and slightly narrowed.

Investors have likely priced in the sector optimism and are taking a “wait-and-see” approach as the general economy continues to navigate through global uncertainty.

As we wrap up the third quarter, the October and November earnings reports will be very interesting to monitor. We will hear if construction materials companies were able to maintain their strong performances.

FMI Capital Advisors’ Construction Materials Index (CMI) versus the Dow Jones Industrial Average and S&P 500 as of Sept. 19, 2023. Source: S&P CapIQ as of Sept. 19, 2023 | Click to enlarge

The CMI is a proprietary index of 18 publicly traded companies that operate in the construction materials space. FMI’s CMI includes Arcosa, Buzzi Unicem, Cementos Argos, Cemex, Colas, Construction Partners Inc., CRH, Eagle Materials, Granite Construction, Grupo Cementos de Chihuahua, HeidelbergCement, Holcim, Knife River Corp., Martin Marietta Materials, Summit Materials, The Monarch Cement Co., Titan Cement International and Vulcan Materials Co.

George Reddin, Rob Mineo and Evan Coughlin are with FMI Capital Advisors.