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Beacon (BECN) Expands in Nevada With Silver State Acquisition

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Beacon Roofing Supply, Inc. (BECN - Free Report) acquired Silver State Building Materials, Inc., a Gardnerville, NV-based business with expertise in residential roofing and complementary products.

Although the financial terms of the deal were not disclosed, this addition will broaden Beacon’s footprint in the South Lake Tahoe and Reno markets.

Shares of Beacon gained 1.9% during the trading session on Jun 12, 2023.

Focus on Ambition 2025

The company currently has been focusing on its Ambition 2025 targets (announced on Feb 24, 2022) which emphasize operational excellence, above-market growth trajectory and accelerated stockholder value creation. The financial targets of Ambition 2025 assume that sales will reach $9 billion (8% CAGR) and $1 billion of EBITDA (10% CAGR), which would translate into 11% EBITDA margins (up 100 basis points from 2021).

As part of this initiative, Beacon has been focusing on business expansion through bolt-on acquisitions and divestitures. The company has expanded its branch footprint through the completion of four acquisitions and the opening of five new locations so far in 2023.
 

Zacks Investment Research
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Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — have gained 41.6% year to date, outperforming the industry’s 2.2% rise. The company has been benefiting from strategic initiatives and the successful execution of technology initiatives in the growing e-commerce platform.

Zacks Rank & Key Picks

Beacon currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Retail-Wholesale sector are:

MercadoLibre, Inc. (MELI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). MELI has a trailing four-quarter earnings surprise of 35%, on average. Shares of MELI have gained 100.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MELI’s 2023 sales and earnings per share (EPS) indicates a rise of 27.6% and 75%, respectively, from the year-ago period’s levels.

Abercrombie & Fitch Co. (ANF - Free Report) presently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 480.6%, on average. Shares of ANF have increased 78.7% in the past year.

The Zacks Consensus Estimate for ANF’s 2023 sales and EPS indicates a rise of 3.4% and 660%, respectively, from the year-ago period’s levels.

Chipotle Mexican Grill, Inc. (CMG - Free Report) presently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 4.7%, on average. Shares of CMG have increased 71.4% in the past year.

The Zacks Consensus Estimate for CMG’s 2023 sales and EPS indicates a rise of 14% and 34%, respectively, from the year-ago period’s levels.

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