Stella-Jones Inc. is widely recognized as a supplier of pressure-treated lumber and as such has been dependable yet slow growth company. From a relative strength (RS) perspective, the stock exhibits low RS, currently ranked 83rd out of 153 companies in the SIA S&P/TSX Completion Index Report, and has remained in the unfavored red zone for over a year. However, it is now approaching the neutral zone, having recently gained 49 positions within the report over the past month, indicating growing relative strength. With historically low volatility, reflected in a standard deviation of 6.29%, and a dividend yield of 1.44%, Stella-Jones may be viewed as a relatively stable option during periods of market uncertainty. The stock is trading within approximately $7 of its all-time high and belongs to the SIA Construction category, which is currently a favored sector within the SIA Sector Report.
The candlestick chart for SJ.TO illustrates a sustained uptrend since its March 2020 low, characterized by a series of higher highs and higher lows leading up to its all-time high. Following the peak, the subsequent sell-off found support in the mid-$60 range, establishing a base for the stockās latest upward leg. Trading volume has gradually declined since the 2020 low, and a reversal in volume would likely be necessary to support a breakout above the all-time high. Recent acquisitions by Stella-Jones may have shifted the companyās growth outlook, potentially serving as a catalyst for renewed upward momentum.
The P&F chart for SJ.TO highlights several key technical levels. Primary resistance is at the all-time high of $94.49, first set in July 2024 and retested in October. Initial support lies at $79.07, where a three-box reversal could form. Below this, the next support level appears at $73.05, followed by a potential swing-low support zone around $62.34, should deeper weakness occur. These levels outline a technical framework for evaluating the stockās risk and potential upside as it approaches its previous highs.
What may be less widely known is that Stella-Jones also participates in the market for steel lattice towers and utility poles used in power transmission infrastructure. This capability stems from its acquisition of Locweld Inc. in May 2025. Demand for these structures is rising as the electrical grid expands to support the rapidly growing number of data centres, a trend closely tied to the acceleration of AI-related computing needs. As a result, Stella-Jones may offer indirect exposure to data-centre-driven infrastructure investment. In this segment, the company competes with subsidiary firms of Valmont Industries Inc., whose stock has recently rallied to new all-time highs.
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