The Bottom Line 7-5
A quiet week given the July 4th holiday, TRG remains in the midst of our quarterly “Survey Season.” Our Q2’19 Building Product Survey revisited TRG’s 2019 predictions for the group. TRG’s Themes for a Better 2019 (published 1/7/19) addressed headwinds impacting stock prices, 1) interest rate momentum (4 increases in 2018 alone); 2) margin compression from inflation & tariff headwinds; and 3) slowing momentum in the residential end market by late summer/early fall. This past week’s report focused on what has and hasn’t panned out for our predictions of 1) slower interest rate momentum; 2) less inflationary pressures; 3) U.S. centric focus; 4) a relatively better R&R trend; and 5) a steady non-res end market outlook. Looking forward, this week TRG is hosting a field trip on Wednesday, July 10th to meet with key representatives of the Georgia DOT, followed by a quarry tour and meeting with Vulcan Materials (VMC - $139.76) and top Atlanta-based customer CW Matthews.