Goldman Sachs names top EU construction stocks amid market headwinds

Goldman Sachs has highlighted four European construction stocks as ideal choices amid a market slowdown. The firm favors companies that can maintain pricing power and are tied to infrastructure projects over residential developments.

Sika AG, a Swiss manufacturer of construction chemicals and specialty materials, tops the bank's list. Sika benefits from pricing power and exposure to non-residential construction and infrastructure, sectors which are currently outpacing residential markets.

Holcim AG, a Swiss cement and building materials conglomerate, ranks second among Goldman Sachs' favored stocks. The bank cites Holcim's ties to infrastructure and other resilient construction sectors, coupled with its ability to hold onto prices despite weakening demand.

German cement and aggregates producer Heidelberg Materials AG is another preferred stock by the bank. Goldman Sachs underscores the company's resilience due to infrastructure demand and pricing resilience while the housing market continues to lag.

Lastly, Rockwool AS, a Danish insulation manufacturer, completes the bank's list of preferred picks. Goldman Sachs highlights Rockwool's preference for companies with pricing power and limited dependence on a quick housing recovery.