In the early days of COVID-19 lockdowns, many home improvement companies, from Pool Corporation (NASDAQ: POOL) to Home Depot (NYSE: HD), saw their stock climb. People were determined to make the most of the homes where they were confined, increasing their living space by making outdoor improvements. But the share prices for major outdoor living product companies, including Pool, Azek (NYSE: AZEK) and Trex (NYSE: TREX), have begun to fluctuate noticeably in recent months — no longer riding the steady “stay-home stock” tailwind they were in during the first six months of the pandemic.
What does this volatility indicate?
Conceivably, the jagged rises and drops in stock prices could correlate with ever-changing, unpredictable changes in COVID-19 community rules and future forecasts. If nothing is certain — including income, school schedules, or vaccine rollout — it’s hard to invest heavily in long-term improvement projects.