Simpson Manufacturing Company Inc

Several stocks made notable moves on Tuesday. H&R Block rose 6.2% after Stephens & Co. initiated coverage with an Equal-Weight rating and a $47 price target. Corning fell 13% after its second-quarter revenue and third-quarter sales forecast missed Wall Street expectations. Sherwin-Williams gained 7.5% on stronger-than-expected second-quarter earnings and a raised full-year profit forecast. Brown & Brown advanced 5% as investors focused on strong year-over-year growth and in-line earnings despite a slight revenue shortfall. Simpson added 2.8% after its second-quarter results exceeded analyst expectations.

Simpson Manufacturing reported second-quarter CY2026 revenue of $671.1 million, beating Wall Street estimates and rising 6.3% year on year. GAAP earnings per share came in at $3.09, 13.6% above the consensus estimate of $2.72. Adjusted EBITDA reached $196.1 million, exceeding the $173.4 million analyst forecast, while operating margin improved to 25.2% from 22.2% a year earlier. President and CEO Mike Olosky attributed the performance to solid execution and growth in both North America and Europe.

Zacks Equity Research has identified United Rentals, Argan, Simpson Manufacturing, Everus Construction Group and Construction Partners as five building product stocks well-positioned to navigate industry headwinds. The Zacks Building Products - Miscellaneous industry, a 35-stock group within the broader Zacks Construction sector, currently carries a Zacks Industry Rank of 170, placing it in the bottom 31% of more than 250 Zacks industries. The industry faces pressure from elevated input costs, tariff-related uncertainty, high interest rates and housing affordability challenges, but sustained investment in infrastructure, power, grid modernization, data centers and advanced manufacturing is supporting healthy project pipelines. Resilient repair and remodeling activity and demand for premium, energy-efficient products are also helping companies maintain pricing power. Among the five highlighted stocks, Argan and Everus hold a Zacks Rank of 1, or Strong Buy, while United Rentals, Simpson and Construction Partners carry a Zacks Rank of 2, or Buy.

Shares of Simpson, Masco, and Hayward jumped in afternoon trading after both chambers of Congress passed the 21st Century ROAD to Housing Act, the most significant federal housing-supply legislation since 1990. The bill aims to boost supply by cutting red tape, streamlining environmental reviews, modernizing manufactured-housing rules, and barring institutional owners of 350 or more single-family homes from buying additional existing homes. Simpson rose 4.1%, Masco gained 5.9%, and Hayward climbed 5.5%. The rally was also supported by KB Home's quarterly revenue beat and a drop in the 10-year Treasury yield below 4.5%, which helped push mortgage rates lower and reinforced demand for new construction.

Home construction materials stocks delivered a strong first quarter, with the 11 companies tracked by StockStory beating revenue estimates by 2.8% on average and issuing next-quarter guidance 1.6% above consensus. Builders FirstSource reported revenues of $3.29 billion, down 10.1% year on year but exceeding expectations by 3.6%, while Simpson posted revenues of $588 million, up 9.1% and beating estimates by 6.4%. Griffon, the weakest performer, reported revenues of $421.9 million, down 1.1%, and issued full-year guidance that missed analyst expectations. Fortune Brands met revenue estimates at $1.01 billion, and Hayward surpassed expectations by 6.5% with revenues of $255.2 million. Share prices across the group have held steady, rising 3.1% on average since the earnings releases.

SPX Technologies has returned about 21.5% since the start of the calendar year, outperforming the average 17% gain of the 88-stock Construction group. The company holds a Zacks Rank of #2 (Buy), and the Zacks Consensus Estimate for its full-year earnings has moved 2.4% higher over the past 90 days. Within the more specific Building Products - Air Conditioner and Heating industry, a 7-stock group that has gained an average of 46.9% year-to-date, SPX Technologies is slightly underperforming. Another Construction stock, Simpson Manufacturing, has returned 24% year-to-date and also carries a Zacks Rank of #2 (Buy), with its consensus EPS estimate rising 2.2% over the past three months.