We recently published a list of Why These 15 Construction Stocks Are Plunging in 2025. In this article, we are going to take a look at where Apogee Enterprises Inc (NASDAQ:APOG) stands against other construction stocks that are plunging in 2025.
2025 is shaping up to be a pivotal moment for the construction industry. Not long ago, the sector was booming. Infrastructure construction stocks soared as government contracts poured in and a broader economic expansion fueled optimism. There were massive infrastructure and energy projects with endless growth potential, and companies tied to these projects thrived.
However, the pendulum has swung hard in the opposite direction. Today, the industry faces a stark slowdown, and those once-high-flying construction stocks are plunging. The U.S. GDP is expected to contract in Q1 2025, and residential and commercial projects are stalling as financing costs rise and demand weakens.
Looking ahead, the outlook is murky at best. Some experts predict a modest rebound in late 2025 if interest rates ease and loan activity picks up. But considering tariffs are only getting higher, this could drive up inflation again and cause interest rates to stay up.
These stocks have borne the brunt of the downturn. It’s worth looking into if you want a front-row seat to the industry’s ups and downs.
Methodology
For this article, I screened the worst-performing construction stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
High-rise buildings with aluminum framed windows, showing the company’s architectural systems in action.
Apogee Enterprises Inc (NASDAQ:APOG)
Number of Hedge Fund Holders In Q4 2024: 31
Apogee Enterprises Inc (NASDAQ:APOG) sells glass solutions for commercial buildings and fine art framing.
The stock is down significantly so far in 2025 as concerns arose due to minimal revenue growth (0.5% year-over-year) and weak demand across markets. That’s even though the company exceeded both sales and earnings expectations.
The company revised its fiscal 2025 outlook and projected a 5% decline in full-year net sales and adjusted EPS at the lower end of guidance ($4.90-$5.20).
Operating margin fell from 11.1% to 8.4%, while diluted EPS decreased from $1.23 to $0.96 ($1.19 adjusted).
Also, Apogee completed a $242 million acquisition of UW Solutions, which added $8.8 million in revenue but diluted adjusted EPS by $0.05 due to increased interest and amortization expenses. On top of that, persistent weak demand in commercial construction markets and higher interest rates weighed on performance, particularly in the Architectural Glass segment.
The consensus price target of $62 implies 30.42% upside.
APOG stock is down 33.10% year-to-date.
Overall, APOG ranks 5th on our list of construction stocks that are plunging in 2025. While we acknowledge the potential of APOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
