On Jul 18, 2016, Zacks Investment Research upgraded Gibraltar Industries, Inc. (ROCK Quick QuoteROCK - Free Report) to a Zacks Rank #1 (Strong Buy) from a Zacks Rank #3 (Hold). Going by the Zacks model, companies with a Zacks Rank #1 are likely to perform better than the broader market over the next quarters.

Why the Upgrade?

Gibraltar Industries is on track to enhance its top line and bottom line on the back of a productive value-creation strategy. Under this program, the company continues to improve its operational performance through more economic pricing, reduction in overhead expenses, consolidation of important facilities and increased efficiency in all three business segments.

Moreover, the company is attempting to boost its revenue growth via strategic inorganic growth initiatives. For instance, the RBI acquisition is expected to support Gibralter Industries’ financial position in the quarters ahead.

We also believe that the company’s pillar growth strategy would prove to be highly productive in the upcoming quarters. Based on such positives, Gibralter Industries expects revenues in the range of $1.04–$1.06 billion for full-year 2016. This reflects a 1% year-over-year increase. Full-year earnings are estimated the range of $1.30–$1.40 per share as against $1.09 at year-end 2015.

Over the last 60 days the Zacks Consensus Estimate for the stock remained unchanged for 2016 but has increased marginally for 2017.

Other Stocks to Consider

Other well-ranked stocks in the industry include Caesarstone Ltd. (CSTE Quick QuoteCSTE - Free Report) , Headwaters Inc. and James Hardie Industries plc (JHX Quick QuoteJHX - Free Report) . All the three companies currently hold a Zacks Rank #2 (Buy).

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