Shares of PGT, Inc. gained around 1.6% to close at $12.03 yesterday, a day after the company announced the development of a new fully-owned subsidiary, CGI Commercial as well as its acquisition of an established fabricator of storefront window and door products, US Impact Systems (USI). This will provide new opportunities to help PGT expand its market reach and offer better customer service.
The transaction is in sync with PGT’s plan to grow strategically. CGI Commercial will operate under the PGT brands as a subsidiary of CGI Windows & Doors. Located in Miami, FL, the new subsidiary is dedicated to serving the commercial market.
On the other hand, the buyout of US Impact Systems supports the company‘s expansion in the commercial market, adding capabilities such as fabricating and glazing window and door frames for commercial products.
The deal is valued at around $2 million with an additional $2 million potential in two years. The deal closed on Aug 31, 2016 and is not expected to have any material impact on the top- or bottom-line results this year. PGT will provide additional information about this transaction during the third-quarter earnings call.
The company’s focus on actively evaluating acquisition opportunities in windows and doors is expected to drive long-term growth. Moreover, a strong housing market and recovery in new housing construction are significant tailwinds.
Per its strategies, PGT acquired high performance windows and door maker, WinDoor in Feb 2016. The buyout will be accretive to earnings within 12 to 18 months, diversify PGT’s portfolio, and enhance its leadership position in the growing impact-resistant window and door industry.
PGT currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector are Argan, Inc. (AGX - Free Report) , CRH plc (CRH - Free Report) and Gibraltar Industries, Inc. (ROCK - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Shares of PGT, Inc. gained around 1.6% to close at $12.03 yesterday, a day after the company announced the development of a new fully-owned subsidiary, CGI Commercial as well as its acquisition of an established fabricator of storefront window and door products, US Impact Systems (USI). This will provide new opportunities to help PGT expand its market reach and offer better customer service.
The transaction is in sync with PGT’s plan to grow strategically. CGI Commercial will operate under the PGT brands as a subsidiary of CGI Windows & Doors. Located in Miami, FL, the new subsidiary is dedicated to serving the commercial market.
On the other hand, the buyout of US Impact Systems supports the company‘s expansion in the commercial market, adding capabilities such as fabricating and glazing window and door frames for commercial products.
The deal is valued at around $2 million with an additional $2 million potential in two years. The deal closed on Aug 31, 2016 and is not expected to have any material impact on the top- or bottom-line results this year. PGT will provide additional information about this transaction during the third-quarter earnings call.
The company’s focus on actively evaluating acquisition opportunities in windows and doors is expected to drive long-term growth. Moreover, a strong housing market and recovery in new housing construction are significant tailwinds.
Per its strategies, PGT acquired high performance windows and door maker, WinDoor in Feb 2016. The buyout will be accretive to earnings within 12 to 18 months, diversify PGT’s portfolio, and enhance its leadership position in the growing impact-resistant window and door industry.
PGT currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector are Argan, Inc. (AGX - Free Report) , CRH plc (CRH - Free Report) and Gibraltar Industries, Inc. (ROCK - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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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