Beacon Roofing Supply, Inc. (BECN - Free Report) has acquired Metro Sealant & Waterproofing Supply, Inc., a company based in Springfield, VA, along with three other branches located in Ashland and Virginia Beach, VA, and Linthicum, MD.
This acquisition marks Beacon’s second buyout of 2024. The company is off to a solid start with its product diversification and footprint expansion initiatives. This strategic investment will aid the company in leveraging the business portfolio of Metro Sealant and position it well to provide waterproofing protection in communities across the country.
Shares of BECN have inched down 0.3% during the trading hours on Feb 12.
Focus on Ambition 2025 Targets
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.
Currently, the company is concentrating on achieving its Ambition 2025 targets, which were announced on Feb 24, 2022. The financial targets of Ambition 2025 assume that sales will reach $9 billion (8% CAGR) and $1 billion of EBITDA (10% CAGR), which would translate to 11% EBITDA margins (up 100 basis points from 2021).
As part of achieving its Ambition 2025 targets, Beacon has been focusing on business expansion through bolt-on acquisitions and divestitures. In the first nine months of 2023, the company opened 19 new branch locations. Also, it added three Greenfields during the third quarter of 2023. BECN continues to focus on expansion to drive growth through acquisitions and the addition of greenfield locations. The company plans to open 25 branches in 2023.
Notably, Beacon has exceeded its Ambition 2025 revenue and shareholder return targets for 2023 and is on a solid path to achieving its full Ambition 2025 plan.
Price Performance
Shares of this publicly traded distributor of residential and non-residential roofing materials have increased 41.2% in the past year, outperforming the Zacks Building Products - Retail industry’s 14.9% growth. The robust demand environment of the non-discretionary repair and re-roofing market has most likely backed the uptrend. Also, its focus on disciplined pricing, labor productivity and working capital management is encouraging.
Moreover, earnings estimates for this current Zacks Rank #3 (Hold) company for the fourth quarter of 2023 quarter have moved north to $1.69 per share from $1.68 per share in the past 30 days, indicating 38.5% growth from a year ago. BECN has a trailing four-quarter earnings surprise of 11.1%, on average. Such an uptrend depicts analysts’ optimism about the stock’s growth potential.
Key Picks
Here are some better-ranked stocks from the Retail-Wholesale sector.
Deckers Outdoor Corporation (DECK - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 32.1%, on average. The stock has surged 99.5% in the past year. The Zacks Consensus Estimate for DECK’s fiscal 2024 sales and earnings per share (EPS) suggests an increase of 15.3% and 37.3%, respectively, from the year-ago levels.
Amazon.com, Inc. (AMZN - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 51%, on average. The stock has risen 72.9% in the past year.
The Zacks Consensus Estimate for AMZN’s 2024 sales and EPS indicates a rise of 11.4% and 39%, respectively, from the year-ago levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 137.9%, on average. The stock has increased 46.9% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales suggests an improvement of 1.1%, but EPS suggests a decline of 0.9%, respectively, from the year-ago levels.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Beacon Roofing Supply, Inc. (BECN - Free Report) has acquired Metro Sealant & Waterproofing Supply, Inc., a company based in Springfield, VA, along with three other branches located in Ashland and Virginia Beach, VA, and Linthicum, MD.
This acquisition marks Beacon’s second buyout of 2024. The company is off to a solid start with its product diversification and footprint expansion initiatives. This strategic investment will aid the company in leveraging the business portfolio of Metro Sealant and position it well to provide waterproofing protection in communities across the country.
Shares of BECN have inched down 0.3% during the trading hours on Feb 12.
Focus on Ambition 2025 Targets
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.
Currently, the company is concentrating on achieving its Ambition 2025 targets, which were announced on Feb 24, 2022. The financial targets of Ambition 2025 assume that sales will reach $9 billion (8% CAGR) and $1 billion of EBITDA (10% CAGR), which would translate to 11% EBITDA margins (up 100 basis points from 2021).
As part of achieving its Ambition 2025 targets, Beacon has been focusing on business expansion through bolt-on acquisitions and divestitures. In the first nine months of 2023, the company opened 19 new branch locations. Also, it added three Greenfields during the third quarter of 2023. BECN continues to focus on expansion to drive growth through acquisitions and the addition of greenfield locations. The company plans to open 25 branches in 2023.
Notably, Beacon has exceeded its Ambition 2025 revenue and shareholder return targets for 2023 and is on a solid path to achieving its full Ambition 2025 plan.
Price Performance
Shares of this publicly traded distributor of residential and non-residential roofing materials have increased 41.2% in the past year, outperforming the Zacks Building Products - Retail industry’s 14.9% growth. The robust demand environment of the non-discretionary repair and re-roofing market has most likely backed the uptrend. Also, its focus on disciplined pricing, labor productivity and working capital management is encouraging.
Moreover, earnings estimates for this current Zacks Rank #3 (Hold) company for the fourth quarter of 2023 quarter have moved north to $1.69 per share from $1.68 per share in the past 30 days, indicating 38.5% growth from a year ago. BECN has a trailing four-quarter earnings surprise of 11.1%, on average. Such an uptrend depicts analysts’ optimism about the stock’s growth potential.
Key Picks
Here are some better-ranked stocks from the Retail-Wholesale sector.
Deckers Outdoor Corporation (DECK - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 32.1%, on average. The stock has surged 99.5% in the past year. The Zacks Consensus Estimate for DECK’s fiscal 2024 sales and earnings per share (EPS) suggests an increase of 15.3% and 37.3%, respectively, from the year-ago levels.
Amazon.com, Inc. (AMZN - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 51%, on average. The stock has risen 72.9% in the past year.
The Zacks Consensus Estimate for AMZN’s 2024 sales and EPS indicates a rise of 11.4% and 39%, respectively, from the year-ago levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 137.9%, on average. The stock has increased 46.9% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales suggests an improvement of 1.1%, but EPS suggests a decline of 0.9%, respectively, from the year-ago levels.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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