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NCI Building & Ply Gem Form Cornerstone Building Brands

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NCI Building Systems, Inc. will operate as “Cornerstone Building Brands” and trade under the ticker symbol "CNR" on the New York Stock Exchange beginning May 24, 2019. However, the changes are subject to shareholder approval at the company's Annual Meeting of Shareholders to be held on May 23, 2019. Notably, NCI Building and Ply Gem Parent LLC merged last year to become the largest manufacturer of exterior building products in North America.

On Nov 16, 2018, NCI Building completed the merger of Ply Gem Parent, LLC. As specified by the terms of the transaction, Ply Gem shareholders received approximately 58.7 million shares of NCI common stock. Meanwhile, NCI Building shareholders retained 53% ownership of the combined entity, with Ply Gem stockholders possessing the remaining 47%.

Cornerstone’s comprehensive product portfolio will consist of windows, vinyl siding, insulated metal panels, metal roofing, wall systems and metal accessories. Products will continue to be available in market through their existing brand names.

Meanwhile, the company has been implementing and executing several community-focused programs including the Home for Good project. This campaign is a key corporate initiative that helped build and remodel more than 500 homes in 90 communities across the United States since 2016.

Share Price Performance

Shares of NCI Building have declined 64.3% in a year’s time, underperforming its industry’s 13.9% decrease. Restructuring charges, raw-material cost inflation and strong competition are pressing concerns for the company. Also, it is facing continuous freight and labor cost pressure. In fact, freight has been hurting the company’s performance over the past 24 months.



Zacks Rank & Key Picks

Currently, NCI Building carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Construction space include Apergy Corporation , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) . While Apergy and Quanta Services sport a Zacks Rank #1 (Strong Buy), AECOM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apergy, Quanta Services and AECOM’s earnings for the current year are expected to increase 2.1%, 25.3% and 2.6%, respectively.

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