Core Viewpoint - Insteel Industries, Inc. (IIIN) and Atkore Inc. (ATKR) are positioned to benefit from growth in the construction sector, driven by repair and remodeling activities, with each company having distinct strengths and challenges in their respective markets [1]. Insteel Industries - IIIN is a leader in manufacturing steel wire reinforcing products for concrete construction, experiencing strong demand due to increased construction activity and contributions from acquired assets [2][3]. - In the second quarter of fiscal 2025, IIIN's net sales rose 26.1% year-over-year to $160.7 million, with shipments increasing by 28.9% [3]. - The company anticipates growth in the non-residential construction market, supported by federal funding from the Infrastructure Investment and Jobs Act, which is expected to enhance project activity [4]. - IIIN is focused on acquisitions to expand its customer base and product lines, including the acquisition of EWP and O'Brien Wire Products, which strengthened its position in the Midwest and enhanced its product offerings [5]. - In the first half of fiscal 2025, IIIN returned $20.6 million to shareholders in dividends and repurchased $1.7 million in shares [6]. Atkore Inc. - ATKR specializes in diversified electrical infrastructure products and is benefiting from strong demand in the data center market for its metal framing and cable management solutions [7]. - The company has invested in enhancing its construction services, leading to a 3.4% year-over-year increase in organic revenues in the Safety & Infrastructure segment in the second quarter of fiscal 2025 [8]. - In the first half of fiscal 2025, ATKR paid $22 million in dividends and repurchased $100 million in shares, with a 3.1% dividend increase announced in April 2025 [9]. - However, ATKR faces challenges with rising operating costs, as its cost of sales increased by 3% year-over-year, leading to a decline in gross margin by 1,040 basis points to 26.4% [10]. Earnings Estimates - The Zacks Consensus Estimate for IIIN's fiscal 2025 earnings is $1.86 per share, reflecting a 34.8% increase over the past 30 days and an 87.9% year-over-year growth [11]. - For ATKR, the fiscal 2025 earnings estimate stands at $6.00 per share, indicating a 3.6% increase over the past 30 days but a year-over-year decline of 52.7% [11]. Stock Performance and Valuation - Over the past three months, IIIN shares have increased by 27.5%, while ATKR stock has gained 4.3% [13]. - IIIN is trading at a forward price-to-earnings ratio of 14.46X, below its two-year median of 15.43X, whereas ATKR's forward earnings multiple is 11.53X, above its median of 9.73X [14]. Final Assessment - IIIN's strong momentum in the non-residential construction market, along with strategic acquisitions and growth investments, positions it favorably for future growth [15]. - In contrast, ATKR's profitability is being impacted by rising costs, despite its strengths in the Safety & Infrastructure segment [15]. - Based on current factors, IIIN is viewed as a more attractive investment compared to ATKR, with IIIN holding a Zacks Rank of 1 (Strong Buy) and ATKR a Zacks Rank of 3 (Hold) [16].