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.
TopBuild (BLD) to Buy Best Insulation & Expand Presence
Read MoreHide Full Article
TopBuild Corp. (BLD - Free Report) , an installer and distributor of insulation and building material products, intends to acquire all assets of Best Insulation. The deal — expected to close within seven business days — will enhance TopBuild's presence in the southeast and southwest regions and bolster its installation business.
Best Insulation is well-known for its residential insulation services, catering to key markets in Texas (Austin, San Antonio and Houston), Arizona (Phoenix and Tucson), Tennessee (Nashville) and Florida (Tampa and Lakeland). This acquisition strengthens TopBuild's market position.
Moreover, this acquisition marks TopBuild's second announcement in 2023, following another strategic purchase earlier in the year. Combined, these acquisitions contribute approximately $162 million in annual revenues, further solidifying TopBuild's financial position and market presence.
In conclusion, BLD’s acquisition of Best Insulation, which generated around $100 million in revenues over the past 12 months, is a significant move that enhances its position in the insulation industry. The addition of Best Insulation's assets, customer base and expertise strengthens TopBuild's capabilities and allows it to capitalize on the high-growth markets served by Best Insulation. With an expanded product offering and increased revenue potential, TopBuild is well-poised to capitalize on the booming construction industry in the Southeast and Southwest United States.
Acquisitions – a Key Growth Driver
TopBuild views acquisitions as a key strategy for growth, complementing its organic growth efforts and expanding its reach in various markets and product lines. On Jan 26, 2023, the company completed its first acquisition of the year by acquiring SRI Holdings, a residential insulation installation company.
In 2022, BLD made five acquisitions of insulation companies, namely CV Insulation, LLC., Assured Insulating, Green Energy, Billings and Southwest. These acquisitions are expected to generate annual revenues of $17.3 million. The first quarter of 2023 saw an increase in BLD's net sales, partially driven by these acquisitions, which contributed to 1.3% sales growth. TopBuild's primary focus is on driving top-line growth, ensuring the successful integration of acquired companies and improving operational efficiencies.
Image Source: Zacks Investment Research
BLD has surged 71.6% in the year-to-date (YTD) period compared with the Zacks Building Products – Miscellaneous industry’s growth of 28.6%. Earnings estimates for 2023 have moved north to $16.37 per share from $15.71 over the past 60 days, depicting analysts' optimism about the company’s growth prospects.
Zacks Rank & Key Picks
TopBuild currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks from the Construction sector are Eagle Materials Inc. (EXP - Free Report) , Dycom Industries, Inc. (DY - Free Report) and Vulcan Materials Company (VMC - Free Report) .
EXP delivered a trailing four-quarter earnings surprise of 6.5%, on average. Shares of the company have rallied 38.1% YTD. The Zacks Consensus Estimate for Eagle Materials’ fiscal 2024 sales and EPS indicates growth of 2% and 8.4%, respectively, from the previous year’s levels.
Dycom currently sports a Zacks Rank of 1. DY delivered a trailing four-quarter earnings surprise of 153.7%, on average. Shares of the company have risen 21.4% YTD.
The Zacks Consensus Estimate for DY’s fiscal 2024 sales and EPS calls for growth of 8.3% and 41%, respectively, from the previous year’s levels.
Vulcan Materials currently carries a Zacks Rank #2 (Buy). VMC has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of the company have rallied 27.7% in the past year.
The Zacks Consensus Estimate for Vulcan Materials’ 2023 sales and EPS implies growth of 5.9% and 26.2%, respectively, from the previous year’s levels.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TopBuild (BLD) to Buy Best Insulation & Expand Presence
TopBuild Corp. (BLD - Free Report) , an installer and distributor of insulation and building material products, intends to acquire all assets of Best Insulation. The deal — expected to close within seven business days — will enhance TopBuild's presence in the southeast and southwest regions and bolster its installation business.
Best Insulation is well-known for its residential insulation services, catering to key markets in Texas (Austin, San Antonio and Houston), Arizona (Phoenix and Tucson), Tennessee (Nashville) and Florida (Tampa and Lakeland). This acquisition strengthens TopBuild's market position.
Moreover, this acquisition marks TopBuild's second announcement in 2023, following another strategic purchase earlier in the year. Combined, these acquisitions contribute approximately $162 million in annual revenues, further solidifying TopBuild's financial position and market presence.
In conclusion, BLD’s acquisition of Best Insulation, which generated around $100 million in revenues over the past 12 months, is a significant move that enhances its position in the insulation industry. The addition of Best Insulation's assets, customer base and expertise strengthens TopBuild's capabilities and allows it to capitalize on the high-growth markets served by Best Insulation. With an expanded product offering and increased revenue potential, TopBuild is well-poised to capitalize on the booming construction industry in the Southeast and Southwest United States.
Acquisitions – a Key Growth Driver
TopBuild views acquisitions as a key strategy for growth, complementing its organic growth efforts and expanding its reach in various markets and product lines. On Jan 26, 2023, the company completed its first acquisition of the year by acquiring SRI Holdings, a residential insulation installation company.
In 2022, BLD made five acquisitions of insulation companies, namely CV Insulation, LLC., Assured Insulating, Green Energy, Billings and Southwest. These acquisitions are expected to generate annual revenues of $17.3 million. The first quarter of 2023 saw an increase in BLD's net sales, partially driven by these acquisitions, which contributed to 1.3% sales growth. TopBuild's primary focus is on driving top-line growth, ensuring the successful integration of acquired companies and improving operational efficiencies.
Image Source: Zacks Investment Research
BLD has surged 71.6% in the year-to-date (YTD) period compared with the Zacks Building Products – Miscellaneous industry’s growth of 28.6%. Earnings estimates for 2023 have moved north to $16.37 per share from $15.71 over the past 60 days, depicting analysts' optimism about the company’s growth prospects.
Zacks Rank & Key Picks
TopBuild currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks from the Construction sector are Eagle Materials Inc. (EXP - Free Report) , Dycom Industries, Inc. (DY - Free Report) and Vulcan Materials Company (VMC - Free Report) .
Eagle Materials currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
EXP delivered a trailing four-quarter earnings surprise of 6.5%, on average. Shares of the company have rallied 38.1% YTD. The Zacks Consensus Estimate for Eagle Materials’ fiscal 2024 sales and EPS indicates growth of 2% and 8.4%, respectively, from the previous year’s levels.
Dycom currently sports a Zacks Rank of 1. DY delivered a trailing four-quarter earnings surprise of 153.7%, on average. Shares of the company have risen 21.4% YTD.
The Zacks Consensus Estimate for DY’s fiscal 2024 sales and EPS calls for growth of 8.3% and 41%, respectively, from the previous year’s levels.
Vulcan Materials currently carries a Zacks Rank #2 (Buy). VMC has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of the company have rallied 27.7% in the past year.
The Zacks Consensus Estimate for Vulcan Materials’ 2023 sales and EPS implies growth of 5.9% and 26.2%, respectively, from the previous year’s levels.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.