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Beacon on Expansion Spree, Opens Branches in Four Locations

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Beacon Roofing Supply, Inc. (BECN - Free Report) expanded its geographic footprint across the United States by opening branches at four locations. The branches were opened in Pelham, AL; Queen Creek, AZ; Port St. Lucie, FL, and Bellingham, WA.

Expanding branch locations in new and existing markets, while simultaneously catering to customers’ needs, is one of the goals under BECN’s Ambition 2025 plan.

BECN’s Focus on Ambition 2025 Plan

Beacon has been intently focusing on several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience, expanding its top line and margin and boosting value for customers, suppliers, employees and shareholders. To add value to the aforementioned expectations, the company is currently focusing on delivering the expected targets through the Ambition 2025 plan.

Expanding through adding new greenfield locations and inorganic moves is one of the key elements of Beacon’s Ambition 2025 plan. It continues to focus on expansion to drive growth through acquisitions and adding greenfield locations. The company plans to open 25 branches in 2024. Furthermore, since the announcement of the Ambition 2025 strategic plan, BECN acquired 21 companies, which added 71 branches to its portfolio. During the second quarter of 2024, it acquired 21 branches, including Roofers Mart of Southern California, Extreme Metal Fabricators and Integrity Metals.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The BECN stock has gained 13.1% in the past year compared with the Zacks Building Products - Retail industry’s 39.1% growth. Various external factors like weather and weaker storm demand, along with ongoing macroeconomic uncertainties, are likely to have been impacting the stock’s performance. Nonetheless, the focus on fulfilling the Ambition 2025 plan through the necessary strategic efforts, positions BECN well for growth in the near term.

BECN’s Zacks Rank & Stocks to Consider

Beacon currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.

Abercrombie & Fitch Co. (ANF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ANF has a trailing four-quarter earnings surprise of 28%, on average. The stock has surged 142% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) indicates growth of 13.1% and 63.4%, respectively, from the year-ago period’s levels.

Boot Barn Holdings, Inc. (BOOT - Free Report) currently carries a Zacks Rank #2 (Buy). BOOT has a trailing four-quarter earnings surprise of 7.1%, on average. The stock has risen 107.5% in the past year.

The consensus estimate for BOOT’s fiscal 2025 sales and EPS indicates growth of 11.5% and 10.5%, respectively, from the year-ago period’s levels.

Sprouts Farmers Market, Inc. (SFM - Free Report) carries a Zacks Rank of 2 at present. SFM has a trailing four-quarter earnings surprise of 12%, on average. The stock has surged 168.4% in the past year.

The Zacks Consensus Estimate for SFM’s 2024 sales and EPS indicates a rise of 9.6% and 18.7%, respectively, from the year-ago period’s levels.

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