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Carlisle (CSL) Up 15.1% in 6 Months: What's Driving the Rally?
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Carlisle Companies Incorporated’s (CSL - Free Report) performance has been impressive in the past six months, which is evident from a 15.1% increase in its share price. Strength across an end market, solid product offerings, buyouts and strong capital-allocation strategies supported positive market sentiments for the company.
The Scottsdale, AZ-based company, with $12.3 billion of market capitalization, belongs to the Zacks Diversified Operations industry. It currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
In the past six months, Carlisle has outperformed the S&P’s growth of 2.9% and the industry’s decline of 11%.
Factors Favoring the Stock
Carlisle’s diversified business structure has been allowing it to mitigate the adverse impacts of weakness in one end market with strength across others. The company is likely to benefit from strength across the reroofing market in the United States and growth in the polyurethane and architectural metals platform in the quarters ahead. The growing demand for energy-efficient building products in Europe, coupled with a strong backlog level, bodes well. For 2022, it expects revenue to increase in the range of 25-30% year over year.
CSL’s focus on product introductions and strength across its newer platforms of Sealants & Adhesives, Foam and Powder are also expected to drive its performance.
The company is focused on strengthening its businesses through the addition of assets. Its Henry Company (September 2021) buyout has been enhancing its product offerings for construction activities. For 2022, the company expects this buyout to boost its earnings by $1.50 per share. Also, its decision to acquire MBTechnology, Inc. (February 2022) is likely to strengthen its building products platform, expanding its energy-efficient solution offerings. Acquisitions had a positive contribution of 12.9% to revenue growth in fourth-quarter 2021.
Carlisle is committed to rewarding shareholders through dividend payouts and share repurchase activities. In 2021, it used $112.5 million and $315.6 million to pay out dividends and repurchase shares. Also, it hiked the quarterly dividend rate by 3% in August 2021. Exiting 2021, it had $5.1 million worth of shares left under its share repurchase program.
The Zacks Consensus Estimate for Carlisle’s earnings is pegged at $14.36 for 2022, up 8.7% from the 60-day-ago figure. The consensus estimate for 2023 earnings stands at $16.15, having moved 8.7% north over the same time frame.
Other Stocks to Consider
Some other top-ranked companies are discussed below.
Franklin Electric Co., Inc. (FELE - Free Report) presently has a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 17.4%, on average.
In the past 60 days, Franklin Electric’s earnings estimates have increased 10.9% for 2022. FELE’s shares have lost 2.5% in the past six months.
Griffon Corporation (GFF - Free Report) currently has a Zacks Rank #1. It delivered a four-quarter earnings surprise of 56.7%, on average.
Griffon’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022) in the past 60 days. GFF’s shares have lost 28.7% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, earnings estimates for FERG have increased 7% for fiscal 2022 (ending July 2022). The stock has declined 7.9% in the past three months.
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Carlisle (CSL) Up 15.1% in 6 Months: What's Driving the Rally?
Carlisle Companies Incorporated’s (CSL - Free Report) performance has been impressive in the past six months, which is evident from a 15.1% increase in its share price. Strength across an end market, solid product offerings, buyouts and strong capital-allocation strategies supported positive market sentiments for the company.
The Scottsdale, AZ-based company, with $12.3 billion of market capitalization, belongs to the Zacks Diversified Operations industry. It currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
In the past six months, Carlisle has outperformed the S&P’s growth of 2.9% and the industry’s decline of 11%.
Factors Favoring the Stock
Carlisle’s diversified business structure has been allowing it to mitigate the adverse impacts of weakness in one end market with strength across others. The company is likely to benefit from strength across the reroofing market in the United States and growth in the polyurethane and architectural metals platform in the quarters ahead. The growing demand for energy-efficient building products in Europe, coupled with a strong backlog level, bodes well. For 2022, it expects revenue to increase in the range of 25-30% year over year.
CSL’s focus on product introductions and strength across its newer platforms of Sealants & Adhesives, Foam and Powder are also expected to drive its performance.
The company is focused on strengthening its businesses through the addition of assets. Its Henry Company (September 2021) buyout has been enhancing its product offerings for construction activities. For 2022, the company expects this buyout to boost its earnings by $1.50 per share. Also, its decision to acquire MBTechnology, Inc. (February 2022) is likely to strengthen its building products platform, expanding its energy-efficient solution offerings. Acquisitions had a positive contribution of 12.9% to revenue growth in fourth-quarter 2021.
Carlisle is committed to rewarding shareholders through dividend payouts and share repurchase activities. In 2021, it used $112.5 million and $315.6 million to pay out dividends and repurchase shares. Also, it hiked the quarterly dividend rate by 3% in August 2021. Exiting 2021, it had $5.1 million worth of shares left under its share repurchase program.
The Zacks Consensus Estimate for Carlisle’s earnings is pegged at $14.36 for 2022, up 8.7% from the 60-day-ago figure. The consensus estimate for 2023 earnings stands at $16.15, having moved 8.7% north over the same time frame.
Other Stocks to Consider
Some other top-ranked companies are discussed below.
Franklin Electric Co., Inc. (FELE - Free Report) presently has a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 17.4%, on average.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, Franklin Electric’s earnings estimates have increased 10.9% for 2022. FELE’s shares have lost 2.5% in the past six months.
Griffon Corporation (GFF - Free Report) currently has a Zacks Rank #1. It delivered a four-quarter earnings surprise of 56.7%, on average.
Griffon’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022) in the past 60 days. GFF’s shares have lost 28.7% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, earnings estimates for FERG have increased 7% for fiscal 2022 (ending July 2022). The stock has declined 7.9% in the past three months.