We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Beacon Stock Set to Benefit From Chicago Metal Supply Acquisition
Read MoreHide Full Article
Beacon Roofing Supply, Inc. (BECN - Free Report) , a leader in roofing and exterior products, has announced the acquisition of Chicago Metal Supply & Fabrication, Inc. This acquisition strengthens Beacon's position in the architectural metal fabrication market, adding valuable expertise and expanding its footprint in the North Central region.
A Strategic Addition to Beacon’s Portfolio
Founded in 2011, Chicago Metal Supply is a family-owned business specializing in custom architectural sheet metal fabrication. With a focus on commercial, residential, and historical restoration, the company is renowned for its precision and creativity. President Alina Bosak of Chicago Metal Supply highlighted that collaborating with Beacon will allow the company to offer an expanded catalog and improved services backed by Beacon’s digital platform.
Boosting Metal Solutions Offerings of BECN
Beacon’s regional vice president, Larry Augello, emphasized that this acquisition will further strengthen Beacon’s metal offerings. By integrating Chicago Metal Supply’s expertise and state-of-the-art equipment, Beacon is well-positioned to grow its commercial and residential metal fabrication services, enhancing its value to existing and new customers alike.
A Step Toward BECN’s Ambition 2025 Goals
Beacon has been actively pursuing growth through acquisitions, surpassing its 2023 Ambition 2025 revenue and shareholder return targets. The acquisition of Chicago Metal Supply fits perfectly into this growth strategy, providing Beacon with a greater market share in the metal fabrication space.
On Feb. 24, 2022, Beacon introduced its "Ambition 2025 Value Creation Framework," designed to drive growth, improve customer service, and expand its presence in key markets. The framework includes new financial targets, a Repurchase Program, and the strategic use of capital to fund acquisitions and greenfield expansions.
Since the start of 2022, Beacon has successfully expanded its geographic footprint, opened 58 greenfield locations and acquired 66 branches from 18 acquisitions. These new and acquired locations generated $556 million in net sales during the first half of 2024, highlighting the success of the Ambition 2025 strategy.
Beacon's progress toward its Ambition 2025 goals was further demonstrated by several key achievements in the first six months of 2024. The company acquired 23 branches and opened 13 new locations while also experiencing a 23.9% increase in digital sales compared to the previous year. Additionally, Beacon saw improvements in the performance of branches that had been in the bottom quintile of financial results.
Why Investors Should Take Notice
Shares of Beacon lost 21.6% in the past three months against the Building Products - Retail industry’s 6.6% rise. While acquisitions and strategic growth initiatives have been contributing to the top line, external factors like weather and weaker storm demand have been impacting performance.
As highlighted by the company during the second-quarter earnings call, the Architectural Billing Index (ABI) — a key indicator used to track construction activity, particularly in the non-residential sector — has been below 50, which indicates contraction in architectural activity, suggesting a slowdown in new construction projects. Yet, strong demand in repair and reroofing activity has offset the slowdown in new commercial construction during the quarter.
Image Source: Zacks Investment Research
The company remains cautiously optimistic, with improvements expected in the third quarter of 2024 and strong cash flow in the second half of 2024.
For investors, Beacon’s continued expansion through strategic acquisitions is a strong indicator of its potential for long-term growth. The addition of Chicago Metal Supply strengthens its metal solutions capabilities, which could contribute to further stock gains. Beacon’s commitment to driving above-market growth makes it a compelling stock to watch.
With this acquisition, Beacon enhances its ability to serve a broader range of customers while maintaining its leadership in the industry, making the company a stronger player in the market.
BECN’s Zacks Rank
Beacon currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the Zacks Retail-Wholesale Sector
TGLS has surpassed the earnings expectation in three of the trailing four quarters, the average surprise being 3.1%. The Zacks Consensus Estimate for TGLS’ 2024 sales indicates growth of 7.1% but a decline of 14.1% for earnings per share (EPS) from the year-ago levels.
Potbelly Corporation (PBPB - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 77.5%, on average. The stock has dropped 5.2% in the past three months.
The Zacks Consensus Estimate for PBPB’s 2025 sales and EPS implies a rise of 4.2% and 30%, respectively, from the year-ago levels.
El Pollo Loco Holdings, Inc. (LOCO - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 21.6%, on average. LOCO’s shares have risen 23.3% in the past three months.
The Zacks Consensus Estimate for LOCO’s 2025 sales and EPS indicates 3.8% and 11.7% growth, respectively, from the prior-year figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Beacon Stock Set to Benefit From Chicago Metal Supply Acquisition
Beacon Roofing Supply, Inc. (BECN - Free Report) , a leader in roofing and exterior products, has announced the acquisition of Chicago Metal Supply & Fabrication, Inc. This acquisition strengthens Beacon's position in the architectural metal fabrication market, adding valuable expertise and expanding its footprint in the North Central region.
A Strategic Addition to Beacon’s Portfolio
Founded in 2011, Chicago Metal Supply is a family-owned business specializing in custom architectural sheet metal fabrication. With a focus on commercial, residential, and historical restoration, the company is renowned for its precision and creativity. President Alina Bosak of Chicago Metal Supply highlighted that collaborating with Beacon will allow the company to offer an expanded catalog and improved services backed by Beacon’s digital platform.
Boosting Metal Solutions Offerings of BECN
Beacon’s regional vice president, Larry Augello, emphasized that this acquisition will further strengthen Beacon’s metal offerings. By integrating Chicago Metal Supply’s expertise and state-of-the-art equipment, Beacon is well-positioned to grow its commercial and residential metal fabrication services, enhancing its value to existing and new customers alike.
A Step Toward BECN’s Ambition 2025 Goals
Beacon has been actively pursuing growth through acquisitions, surpassing its 2023 Ambition 2025 revenue and shareholder return targets. The acquisition of Chicago Metal Supply fits perfectly into this growth strategy, providing Beacon with a greater market share in the metal fabrication space.
On Feb. 24, 2022, Beacon introduced its "Ambition 2025 Value Creation Framework," designed to drive growth, improve customer service, and expand its presence in key markets. The framework includes new financial targets, a Repurchase Program, and the strategic use of capital to fund acquisitions and greenfield expansions.
Since the start of 2022, Beacon has successfully expanded its geographic footprint, opened 58 greenfield locations and acquired 66 branches from 18 acquisitions. These new and acquired locations generated $556 million in net sales during the first half of 2024, highlighting the success of the Ambition 2025 strategy.
Beacon's progress toward its Ambition 2025 goals was further demonstrated by several key achievements in the first six months of 2024. The company acquired 23 branches and opened 13 new locations while also experiencing a 23.9% increase in digital sales compared to the previous year. Additionally, Beacon saw improvements in the performance of branches that had been in the bottom quintile of financial results.
Why Investors Should Take Notice
Shares of Beacon lost 21.6% in the past three months against the Building Products - Retail industry’s 6.6% rise. While acquisitions and strategic growth initiatives have been contributing to the top line, external factors like weather and weaker storm demand have been impacting performance.
As highlighted by the company during the second-quarter earnings call, the Architectural Billing Index (ABI) — a key indicator used to track construction activity, particularly in the non-residential sector — has been below 50, which indicates contraction in architectural activity, suggesting a slowdown in new construction projects. Yet, strong demand in repair and reroofing activity has offset the slowdown in new commercial construction during the quarter.
Image Source: Zacks Investment Research
The company remains cautiously optimistic, with improvements expected in the third quarter of 2024 and strong cash flow in the second half of 2024.
For investors, Beacon’s continued expansion through strategic acquisitions is a strong indicator of its potential for long-term growth. The addition of Chicago Metal Supply strengthens its metal solutions capabilities, which could contribute to further stock gains. Beacon’s commitment to driving above-market growth makes it a compelling stock to watch.
With this acquisition, Beacon enhances its ability to serve a broader range of customers while maintaining its leadership in the industry, making the company a stronger player in the market.
BECN’s Zacks Rank
Beacon currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the Zacks Retail-Wholesale Sector
Tecnoglass Inc. (TGLS - Free Report) currently carries a Zacks Rank of 2 (Buy). The stock has rallied 29.1% in the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TGLS has surpassed the earnings expectation in three of the trailing four quarters, the average surprise being 3.1%. The Zacks Consensus Estimate for TGLS’ 2024 sales indicates growth of 7.1% but a decline of 14.1% for earnings per share (EPS) from the year-ago levels.
Potbelly Corporation (PBPB - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 77.5%, on average. The stock has dropped 5.2% in the past three months.
The Zacks Consensus Estimate for PBPB’s 2025 sales and EPS implies a rise of 4.2% and 30%, respectively, from the year-ago levels.
El Pollo Loco Holdings, Inc. (LOCO - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 21.6%, on average. LOCO’s shares have risen 23.3% in the past three months.
The Zacks Consensus Estimate for LOCO’s 2025 sales and EPS indicates 3.8% and 11.7% growth, respectively, from the prior-year figures.