Shares of SiteOne Landscape Supply, Inc. (SITE - Free Report) have gained an impressive 25.7% in the past three months. Solid product offerings, better-than-expected financial performance and healthy growth opportunities have added to SITE’s attractiveness. It presently sports a Zacks Rank #1 (Strong Buy).
SiteOne Landscape engages in distributing landscape supplies for use in golf courses, outdoor spaces, lawns and gardens. It has a solid customer base in Canada and the United States and primarily includes landscape professionals, both from commercial and residential markets. The company is based in Roswell, GA, and has a market capitalization of $11.3 billion.
The company belongs to the Zacks Industrial Services industry, which comes under the ambit of the Zacks Industrial Products sector. The industry is in the top 41% (with rank of 104) among more than 250 Zacks industries. In the past three months, the industry has declined 11.2%. The S&P 500 has gained 4.1% during the same period while the sector has lost 0.5%.
Factors Influencing the Stock
In the past three months, SiteOne Landscape reported better-than-expected results in the third quarter of 2021. Its earnings surpassed the Zacks Consensus Estimate by 41.46% and increased 61.1% from the year-ago quarter. Healthy sales growth and margin improvements supported the bottom line.
In addition to the solid financial performance, strengthening demand for landscaping services and products, benefits from operational and commercial operations and a wide customer base are beneficial for SiteOne Landscape. Solid backlog and synergistic gains from acquired assets (detailed below) too are tailwinds.
For 2021, SiteOne Landscape predicts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be $380-$400 million, above the previously stated $335-$365 million. The revised projection reflects year-over-year growth of 46-54%. SITE also predicts growth in adjusted EBITDA margin.
Regarding buyout actions, SiteOne Landscape has made seven acquisitions so far in 2021. Its latest deal is the Semco Stone, LLC acquisition (on Nov 15).
In the first three quarters of 2021, SITE invested $71.1 million for purchasing businesses (net of acquired cash). Buyouts boosted sales by $73.5 million (or 10% on a year-over-year basis) in the third quarter.
The Zacks Consensus Estimate for SiteOne Landscape’s earnings per share is pegged at $4.87 for 2021 and $5.17 for 2022, marking increases of 13.8% and 13.4% from the respective 30-day-ago figures. Also, the consensus mark for the fourth quarter of 27 cents per share has jumped 50% over the past 30 days. Such upward revisions in earnings estimates reflect the company’s healthy operating conditions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of SiteOne Landscape Supply, Inc. (SITE - Free Report) have gained an impressive 25.7% in the past three months. Solid product offerings, better-than-expected financial performance and healthy growth opportunities have added to SITE’s attractiveness. It presently sports a Zacks Rank #1 (Strong Buy).
SiteOne Landscape engages in distributing landscape supplies for use in golf courses, outdoor spaces, lawns and gardens. It has a solid customer base in Canada and the United States and primarily includes landscape professionals, both from commercial and residential markets. The company is based in Roswell, GA, and has a market capitalization of $11.3 billion.
The company belongs to the Zacks Industrial Services industry, which comes under the ambit of the Zacks Industrial Products sector. The industry is in the top 41% (with rank of 104) among more than 250 Zacks industries. In the past three months, the industry has declined 11.2%. The S&P 500 has gained 4.1% during the same period while the sector has lost 0.5%.
Factors Influencing the Stock
In the past three months, SiteOne Landscape reported better-than-expected results in the third quarter of 2021. Its earnings surpassed the Zacks Consensus Estimate by 41.46% and increased 61.1% from the year-ago quarter. Healthy sales growth and margin improvements supported the bottom line.
In addition to the solid financial performance, strengthening demand for landscaping services and products, benefits from operational and commercial operations and a wide customer base are beneficial for SiteOne Landscape. Solid backlog and synergistic gains from acquired assets (detailed below) too are tailwinds.
For 2021, SiteOne Landscape predicts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be $380-$400 million, above the previously stated $335-$365 million. The revised projection reflects year-over-year growth of 46-54%. SITE also predicts growth in adjusted EBITDA margin.
Regarding buyout actions, SiteOne Landscape has made seven acquisitions so far in 2021. Its latest deal is the Semco Stone, LLC acquisition (on Nov 15).
In the first three quarters of 2021, SITE invested $71.1 million for purchasing businesses (net of acquired cash). Buyouts boosted sales by $73.5 million (or 10% on a year-over-year basis) in the third quarter.
The Zacks Consensus Estimate for SiteOne Landscape’s earnings per share is pegged at $4.87 for 2021 and $5.17 for 2022, marking increases of 13.8% and 13.4% from the respective 30-day-ago figures. Also, the consensus mark for the fourth quarter of 27 cents per share has jumped 50% over the past 30 days. Such upward revisions in earnings estimates reflect the company’s healthy operating conditions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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