Wolfe Research warns the products sector faces margin squeeze from inflation and weak demand, with the sector down 16% over nine weeks.
Valuations sit roughly 20% below historical averages, and analysts favor James Hardie (JHX) and Trex (TREX) for lower inflation risk.
FBIN and MHK face lower estimates amid cabinet and flooring demand; OC may benefit from significant roofing restocking.
Sector outlook hinges on price hikes offsetting Iran war volatility and oil derivatives, with new residential market remaining challenged through 2026.