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Gibraltar Industries, Inc. (ROCK) Hits Fresh High: Is There Still Room to Run?
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Shares of Gibraltar Industries (ROCK - Free Report) have been strong performers lately, with the stock up 16% over the past month. The stock hit a new 52-week high of $57.69 in the previous session. Gibraltar Industries has gained 24.6% since the start of the year compared to the 15.7% move for the Zacks Construction sector and the 15.6% return for the Zacks Building Products - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 3, 2023, Gibraltar Industries reported EPS of $0.7 versus consensus estimate of $0.62 while it missed the consensus revenue estimate by 3.18%.
For the current fiscal year, Gibraltar Industries is expected to post earnings of $3.57 per share on $1.38 billion in revenues. This represents a 5% change in EPS on a -0.68% change in revenues. For the next fiscal year, the company is expected to earn $4.31 per share on $1.45 billion in revenues. This represents a year-over-year change of 20.87% and 4.87%, respectively.
Valuation Metrics
Gibraltar Industries may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Gibraltar Industries has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16X current fiscal year EPS estimates, which is a premium to the peer industry average of 14X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 9.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Gibraltar Industries currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gibraltar Industries fits the bill. Thus, it seems as though Gibraltar Industries shares could have potential in the weeks and months to come.
How Does ROCK Stack Up to the Competition?
Shares of ROCK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Construction Partners, Inc. (ROAD - Free Report) . ROAD has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Construction Partners, Inc. beat our consensus estimate by 38.89%, and for the current fiscal year, ROAD is expected to post earnings of $0.70 per share on revenue of $1.56 billion.
Shares of Construction Partners, Inc. have gained 14.5% over the past month, and currently trade at a forward P/E of 42.29X and a P/CF of 17.68X.
The Building Products - Miscellaneous industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ROCK and ROAD, even beyond their own solid fundamental situation.
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Gibraltar Industries, Inc. (ROCK) Hits Fresh High: Is There Still Room to Run?
Shares of Gibraltar Industries (ROCK - Free Report) have been strong performers lately, with the stock up 16% over the past month. The stock hit a new 52-week high of $57.69 in the previous session. Gibraltar Industries has gained 24.6% since the start of the year compared to the 15.7% move for the Zacks Construction sector and the 15.6% return for the Zacks Building Products - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 3, 2023, Gibraltar Industries reported EPS of $0.7 versus consensus estimate of $0.62 while it missed the consensus revenue estimate by 3.18%.
For the current fiscal year, Gibraltar Industries is expected to post earnings of $3.57 per share on $1.38 billion in revenues. This represents a 5% change in EPS on a -0.68% change in revenues. For the next fiscal year, the company is expected to earn $4.31 per share on $1.45 billion in revenues. This represents a year-over-year change of 20.87% and 4.87%, respectively.
Valuation Metrics
Gibraltar Industries may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Gibraltar Industries has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16X current fiscal year EPS estimates, which is a premium to the peer industry average of 14X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 9.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Gibraltar Industries currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Gibraltar Industries fits the bill. Thus, it seems as though Gibraltar Industries shares could have potential in the weeks and months to come.
How Does ROCK Stack Up to the Competition?
Shares of ROCK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Construction Partners, Inc. (ROAD - Free Report) . ROAD has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Construction Partners, Inc. beat our consensus estimate by 38.89%, and for the current fiscal year, ROAD is expected to post earnings of $0.70 per share on revenue of $1.56 billion.
Shares of Construction Partners, Inc. have gained 14.5% over the past month, and currently trade at a forward P/E of 42.29X and a P/CF of 17.68X.
The Building Products - Miscellaneous industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ROCK and ROAD, even beyond their own solid fundamental situation.