We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gibraltar Industries (ROCK - Free Report) is a Zacks Rank #5 (Strong Sell) that manufactures and distributes products for renewable energy, conservation, residential, and infrastructure markets in North America and Asia. Their products range from ventilation and expanded metal to mail storage solutions and raid dispersion products and solutions.
After a run of over 200% from the March lows, the stock sits about 10% below all-time highs. After a recent earnings miss, investors have to decided whether its time to take profits as earnings estimates start to fall.
More about ROCK
Gibraltar is headquartered in Buffalo, New York and employs over 2300.The company is valued around $3 billion and has a Forward PE of 26. ROCK has Zacks Style Scores of “F” in Value but “A” in Momentum. The company does not pay a dividend.
The company had been on a nice streak of beating earnings, surprising to the upside for five straight quarters. However, when the company reported in late February investors were surprised with a rare miss, which sent the stock down about 15% in a week.
Q4 Earnings
Q4 earnings came in above last year’s numbers, but ROCK reported a 6.35% earnings miss. The company guided FY21 below expectations, seeing $3.30-47 v the $3.80 expected. Revenues were also guided below expectations.
There were some short-term setbacks as project delays in the renewable segment were delayed, which led to lower margins. While residentials rose on strong demand, infrastructure sales were down.
Investors will be watching for a bounce back in these numbers next quarter, but if there is no turn around, the stock will see pressure.
Estimates
While estimates don’t look bad across the board, the next quarter and the current year are seeing some pressure. Over the last 60 days, we have seen a drop of 15% for the next quarter. For the current year, estimates have fallen 10% over that same time frame.
The Technicals
The stock has had quite the run over the last year, so you can’t blame investors for taking profits when earnings missed. Looking at the charts, the bulls might have more reasons to be cautious.
After earnings, the stock broke the 50-day moving average for the first time since late November. While the stock quickly bounced back above that level, the stock once again lost traction and has become fairly volatile.
For now, the stock is chopping around the 50-day MA at $92 as if there is a big wall that can’t be passed. If the bulls can get a solid move on high volume above this level, perhaps new highs can come.
However, if the up move fails, investors should watch for a drop back to the post earnings lows around $80. If there is overall market weakness, the 200-day moving average is at $71 and would make a better long-term entry point.
In Summary
Gibraltar has been tough as a rock all year, but there are some signs of weakness after this last quarter. Investors should take caution over the next few months and look for a lower entry point as a possible infrastructure rally helps the stock in the back half of the year.
For those interested in the building products space try Advanced Drainage Systems (WMS), which is a Zacks Rank #1 (Strong Buy)
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
??? Smartest stock for 5G telecom ??? Safest investment in 5G hardware ??? Single best 5G buy of all!
Bear of the Day: Gibraltar Industries (ROCK)
Gibraltar Industries (ROCK - Free Report) is a Zacks Rank #5 (Strong Sell) that manufactures and distributes products for renewable energy, conservation, residential, and infrastructure markets in North America and Asia. Their products range from ventilation and expanded metal to mail storage solutions and raid dispersion products and solutions.
After a run of over 200% from the March lows, the stock sits about 10% below all-time highs. After a recent earnings miss, investors have to decided whether its time to take profits as earnings estimates start to fall.
More about ROCK
Gibraltar is headquartered in Buffalo, New York and employs over 2300.The company is valued around $3 billion and has a Forward PE of 26. ROCK has Zacks Style Scores of “F” in Value but “A” in Momentum. The company does not pay a dividend.
The company had been on a nice streak of beating earnings, surprising to the upside for five straight quarters. However, when the company reported in late February investors were surprised with a rare miss, which sent the stock down about 15% in a week.
Q4 Earnings
Q4 earnings came in above last year’s numbers, but ROCK reported a 6.35% earnings miss. The company guided FY21 below expectations, seeing $3.30-47 v the $3.80 expected. Revenues were also guided below expectations.
There were some short-term setbacks as project delays in the renewable segment were delayed, which led to lower margins. While residentials rose on strong demand, infrastructure sales were down.
Investors will be watching for a bounce back in these numbers next quarter, but if there is no turn around, the stock will see pressure.
Estimates
While estimates don’t look bad across the board, the next quarter and the current year are seeing some pressure. Over the last 60 days, we have seen a drop of 15% for the next quarter. For the current year, estimates have fallen 10% over that same time frame.
The Technicals
The stock has had quite the run over the last year, so you can’t blame investors for taking profits when earnings missed. Looking at the charts, the bulls might have more reasons to be cautious.
After earnings, the stock broke the 50-day moving average for the first time since late November. While the stock quickly bounced back above that level, the stock once again lost traction and has become fairly volatile.
For now, the stock is chopping around the 50-day MA at $92 as if there is a big wall that can’t be passed. If the bulls can get a solid move on high volume above this level, perhaps new highs can come.
However, if the up move fails, investors should watch for a drop back to the post earnings lows around $80. If there is overall market weakness, the 200-day moving average is at $71 and would make a better long-term entry point.
In Summary
Gibraltar has been tough as a rock all year, but there are some signs of weakness after this last quarter. Investors should take caution over the next few months and look for a lower entry point as a possible infrastructure rally helps the stock in the back half of the year.
For those interested in the building products space try Advanced Drainage Systems (WMS), which is a Zacks Rank #1 (Strong Buy)
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
??? Smartest stock for 5G telecom
??? Safest investment in 5G hardware
??? Single best 5G buy of all!
Download now. Today the report is FREE >>