If you’re looking to invest in the roofing industry – there’s not a ton to pick from on Wall Street.
Besides these top 3 we’ll share other ways to get your feet wet as well in this article:
- Beacon Supply: Full disclosure, I’ve held this stock for the past 6 months, and it’s done very well for me.
- Owens Corning: Highly regarded, long-standing shingle manufacturer
- Tesla: Solar shingles have been slow to take off, but are gaining more acceptance. Is it a distraction from the main business, or is there a stronger future for Tesla and Elon Musks’ roofing aspirations.
Table of Contents
Roofing Stocks + The home improvement market in general
- Builders First Source – Not just roofing supplies, but flooring and others as well. Still one of the more mighty roaring stocks in Home Improvement this last 5 years (** Past returns do not predict future outcomes – this article and screenshots are from Aug 30, 2023)
- Home Depot can be a way to get into home improvement investing. Yes – then we might be talking about ‘Do it Yourself’ options, but some roofers do buy from Home Depot, and Home Depot generally does well when storms hit etc.
- Many roofers + home service business do not love Angi – but it is another option for home service investing in general. It’s stock has been doing poorly over the last 5 years, and it’s reputation is often touted as one of the worst in home services.
Why invest in Roofing Industry stocks?
Imagine an industry that, no matter what, people will always need. Roofing isn’t going away, friends. Why? Because as long as buildings exist, they need a roof. What’s the ROI on the sky? No one knows, but it’s where you want to shoot! 🚀
Dive into Recession-Resistant Terrain
No one skips on fixing a leaking roof when the economy is down. When the financial forecasts are grim, guess what? The roof over your head still matters! Roofing is recession-resistant. Period. People don’t negotiate with Mother Nature; they fix their roofs. A strong roofing stock portfolio can keep you weatherproof, financially speaking.
Unshakable Foundations: The Financials Don’t Lie
The roofing industry isn’t just hammer and nails; it’s a playground for the investors who know where to dig. Profit margins? Absolutely killer! We’re talking about a space where materials are relatively inexpensive but the expertise? Worth its weight in gold.
Low Barrier to Entry = High Rate of M&A
This industry is teeming with small businesses ripe for acquisition. For stock investors, that’s a double shot of espresso! Companies can expand rapidly, pumping up their stock prices as they gobble up the little guys.
Roofing Industry Investing Beyond Wall Street Stocks
Hey, Wall Street isn’t the only game in town.
If you’ve got the thirst for something a little more intimate, get in with the Private Equity firms specializing in home services or construction.
They’re the backstage pass to the Roofing M&A rock concert, where all the real action happens!
Industry Consultants: Your Secret Weapon
Rub elbows with industry-specific consultants who breathe M&A deals for breakfast. They can help you identify which companies are ripe for acquisition, who’s buying, and who’s just bluffing. If you want to get in the door, these are the folks holding the keys.
Trade Associations: The Networking Goldmines
Joining trade associations like the National Roofing Contractors Association (NRCA) is like becoming a member of an exclusive club. Events, introductions, and oh—the secrets you’ll learn. The amount of insider info you can snag here is pure platinum.
Venture Capitalist Circles: Because Why Not?
The Roofing industry is not just hammers and nails anymore; it’s innovation. The ones who spot these innovations first? Venture Capitalists. Align yourself with these risk takers if you’re eyeing companies who are leading in tech integration or sustainable roofing solutions.
Unleash Your M&A Ambitions: Your Move, Roofing Rockstar
You’re not a spectator; you’re the main event. Roofing M&A isn’t for the timid, but you’re not here to play small, are you?
- So, slide into those Private Equity DMs
- Schmooze with the consultants
- Rub shoulders at the trade events, and…
- Make venture capitalists your weekend brunch pals.
Ready to climb the ladder to the top of the Roofing Empire? 🏆