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Here's Why You Should Hold Carlisle Stock in Your Portfolio Now
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Carlisle Companies Incorporated (CSL - Free Report) has been benefiting from solid momentum in the Construction Materials segment, driven by the solid demand for reroofing products. Growing re-roof activity and inventory normalization in the non-residential construction market have been driving the segment’s performance. In the first six months of 2024, revenues from the segment increased 23% year over year. Driven by the strength across its businesses, CSL projects revenues to increase 12% in 2024 from the year-ago level.
The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In May 2024, Carlisle acquired MTL Holdings from GreyLion Partners. The inclusion of MTL’s solid pre-fabricated edge metal products portfolio will enable CSL to expand its customer offerings and boost its architectural metals business.
Also, Carlisle’s buyout of Polar Industries in November 2023 expanded its polystyrene and graphite polystyrene portfolio, thus boosting its Weatherproofing Technologies segment. Buyouts had a positive impact of 2.1% on net sales growth in the second quarter.
The company also remains committed to rewarding its shareholders with dividend payouts and share buybacks. For instance, in the first half of 2024, it remunerated its shareholders with a dividend of $81.7 million and repurchased shares worth $700 million. Also, the quarterly dividend rate was hiked 18% in August 2024.
CSL Stock’s Price Performance
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company’s shares have gained 20.2% against the industry’s 2.7% decline.
However, the slowdown in the residential construction market and project delays are adversely affecting the Weatherproofing Technologies segment. In the second quarter, organic revenues from the segment inched down 0.6% on a year-over-year basis. Weakness in the residential construction market is expected to affect the segment’s performance in the near term.
Also, the company has been dealing with escalating operating costs and expenses. In the first half of 2024, its selling and administrative expenses and cost of sales rose 16.4% and 8.8%, respectively, on a year-over-year basis. The increase was attributable to higher raw material and labor costs.
VGR delivered a trailing four-quarter average earnings surprise of 15.4%. In the past 60 days, the Zacks Consensus Estimate for Vector Group’s 2024 earnings has increased 5.2%.
Federal Signal Corporation (FSS - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 12.3%.
In the past 60 days, the Zacks Consensus Estimate for FSS’ 2024 earnings has increased 5.2%.
Ferguson Enterprises Inc. (FERG - Free Report) currently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Ferguson’s fiscal 2025 earnings has remained steady.
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Here's Why You Should Hold Carlisle Stock in Your Portfolio Now
Carlisle Companies Incorporated (CSL - Free Report) has been benefiting from solid momentum in the Construction Materials segment, driven by the solid demand for reroofing products. Growing re-roof activity and inventory normalization in the non-residential construction market have been driving the segment’s performance. In the first six months of 2024, revenues from the segment increased 23% year over year. Driven by the strength across its businesses, CSL projects revenues to increase 12% in 2024 from the year-ago level.
The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In May 2024, Carlisle acquired MTL Holdings from GreyLion Partners. The inclusion of MTL’s solid pre-fabricated edge metal products portfolio will enable CSL to expand its customer offerings and boost its architectural metals business.
Also, Carlisle’s buyout of Polar Industries in November 2023 expanded its polystyrene and graphite polystyrene portfolio, thus boosting its Weatherproofing Technologies segment. Buyouts had a positive impact of 2.1% on net sales growth in the second quarter.
The company also remains committed to rewarding its shareholders with dividend payouts and share buybacks. For instance, in the first half of 2024, it remunerated its shareholders with a dividend of $81.7 million and repurchased shares worth $700 million. Also, the quarterly dividend rate was hiked 18% in August 2024.
CSL Stock’s Price Performance
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company’s shares have gained 20.2% against the industry’s 2.7% decline.
However, the slowdown in the residential construction market and project delays are adversely affecting the Weatherproofing Technologies segment. In the second quarter, organic revenues from the segment inched down 0.6% on a year-over-year basis. Weakness in the residential construction market is expected to affect the segment’s performance in the near term.
Also, the company has been dealing with escalating operating costs and expenses. In the first half of 2024, its selling and administrative expenses and cost of sales rose 16.4% and 8.8%, respectively, on a year-over-year basis. The increase was attributable to higher raw material and labor costs.
Stocks to Consider
Some better-ranked companies are discussed below.
Vector Group Ltd. (VGR - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VGR delivered a trailing four-quarter average earnings surprise of 15.4%. In the past 60 days, the Zacks Consensus Estimate for Vector Group’s 2024 earnings has increased 5.2%.
Federal Signal Corporation (FSS - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 12.3%.
In the past 60 days, the Zacks Consensus Estimate for FSS’ 2024 earnings has increased 5.2%.
Ferguson Enterprises Inc. (FERG - Free Report) currently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Ferguson’s fiscal 2025 earnings has remained steady.