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Bull of the Day: Beacon Roofing (BECN)

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Sometimes you have to go old school to find profits. Sure the market is flying to all-time highs and people are running around playing augmented reality games on their mobile phones but don’t lose sight of traditional companies making money. Today’s Bull of the Day is a company that’s invested in putting a roof over your head.

Beacon Roofing Supply (BECN - Free Report) is one of the largest distributors of residential and non-residential roofing materials in the United States and Canada. It also distributes other complementary exterior building products. It operate in several states and three Canadian provinces and is a leading distributor of roofing materials in key metropolitan markets in the Northeast, Mid-Atlantic, Southeast and Southwest regions of the United States and in Eastern Canada.

The company is lighting up the charts here with a Zacks Rank #1 (Strong Buy) to go along with Growth and Momentum Style Scores of A. Add to that a Value Style score of B and you have a VGM Composite of A as well. That must mean that analysts are very bullish in the short term on BECN.

If you dig down into the details you’ll find that two analysts have increased their earnings estimates for the current quarter, next quarter, current year and next year. The bullish sentiment is enough to hike up this year’s Zacks Consensus Estimate from $1.92 to $2.13 for the current year and push up next year’s number from $2.37 to $2.51.

After butting up against resistance at $44 on several occasions, Beacon Roofing finally broke out to the upside last month. Volume on the move higher was a bit above average but really wasn’t eye-popping. This move to $48 really started off the February lows near $32. The stock could pull back to the 21-day moving average at $45.32 and still be in an uptrend.

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