While many industrial companies could benefit from this potential near-term sales spike, those that are not well-positioned to sustain their gains will quickly fall back from an equity valuation perspective.
Also, there remain potential macro risks to the housing sector, which could include a spike in interest rates, which could slow down purchase activity.
On Friday, the VIX plunged to within spitting distance of a fresh annual low, creating a potential oversold condition and giving credence to the possibility of a short-term spike.
Analysts cite that disruption, along with the potential for a full-blown conflict with Iran, as the main reason behind a 20% spike in oil and gasoline prices this year.