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Gibraltar (ROCK) Hits 52-Week High: What's Driving the Stock?
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Gibraltar Industries, Inc. (ROCK - Free Report) crafts a new 52-week high of $78.46 on Dec 15, 2023. The stock pulled back to end the trading session at $78.28.
Shares of this Zacks Rank #2 (Buy) company have gained 70.7% year to date, outperforming the Zacks Building Products - Miscellaneous industry’s 55.8% rally. The stock has fared better than the Zacks Construction sector and the S&P 500 Index’s 48.1% and 23.5% rallies, respectively.
The price surge was probably due to the news related to the Fed’s decision to keep the interest rate steady, which points to an increasingly optimistic for the construction sector. Notably, as the inflation rate displays indications of easing and the economy remains stable, the Federal Open Market Committee's unanimous decision to sustain the benchmark within a targeted range of 5.25%-5.5% offers stability for homebuilders. Furthermore, members of the Federal Open Market Committee have suggested the possibility of rate cuts in the upcoming year.
Image Source: Zacks Investment Research
This civil infrastructure company has also been riding high on the back of solid demand for infrastructure services throughout end markets in both private and public sectors.
Notably, ROCK’s earnings estimates for 2024 have moved north to $4.63 per share from $4.56 over the past 30 days, depicting analysts’ optimism over the company’s prospects. This bullish trend justifies the stock’s addition to investors’ portfolios. Again, it carries an impressive VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum.
Will the Bull Run Continue?
Favorable Macro Scenario: The company’s business prospects are highly correlated with the U.S. housing market conditions and the R&R activity. Prospects of residential construction look good, given the recent Fed’s decision. The lack of existing homes for sale, improving mortgage rate scenario, along with Fed’s decision to keep the interest rate steady point to an increasingly optimistic residential construction market as we head to 2024.
Solid Public Infrastructural Spending: The company and its peers are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments. The U.S. administration’s endeavor to rebuild the nation’s deteriorating roads and bridges and fund new climate resilience and broadband initiatives is expected to aid ROCK.
Strategies: Gibraltar is progressing well, both operationally and financially, on the back of its growth strategy. The company’s Three-Pillar Strategy is mainly focused on three core tenets: Business Systems, Portfolio Management and Organizational Development. The company continues to accelerate the implementation of three pillars through portfolio management initiatives, improvement of the business system and strengthening of the organization.
Higher Return on Equity (ROE): The company’s trailing 12-month ROE is 14.5%, higher than the industry’s 11.2%. This implies that the company is getting more efficient at creating profits and increasing shareholders’ value with respect to its industry.
Other Key Picks
Here are some other top-ranked stocks from the same sector.
It has a trailing four-quarter earnings surprise of 25%, on average. Shares of EME have gained 47.5% in the past year. The Zacks Consensus Estimate for EME’s 2023 sales and earnings per share (EPS) indicates an improvement of 12% and 52.8%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. It has surged 217.1% in the past year.
The Zacks Consensus Estimate for MPTI’s 2023 sales and EPS indicates growth of 30.6% and 156.7%, respectively, from the previous year.
Willdan Group, Inc. (WLDN - Free Report) currently sports a Zacks Rank of 1. WLDN delivered a trailing four-quarter earnings surprise of a whopping 850.6%, on average. The stock has gained 13% in the past year.
The Zacks Consensus Estimate for WLDN’s 2023 sales and EPS indicates growth of 14.1% and 47.7%, respectively, from a year ago.
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Gibraltar (ROCK) Hits 52-Week High: What's Driving the Stock?
Gibraltar Industries, Inc. (ROCK - Free Report) crafts a new 52-week high of $78.46 on Dec 15, 2023. The stock pulled back to end the trading session at $78.28.
Shares of this Zacks Rank #2 (Buy) company have gained 70.7% year to date, outperforming the Zacks Building Products - Miscellaneous industry’s 55.8% rally. The stock has fared better than the Zacks Construction sector and the S&P 500 Index’s 48.1% and 23.5% rallies, respectively.
The price surge was probably due to the news related to the Fed’s decision to keep the interest rate steady, which points to an increasingly optimistic for the construction sector. Notably, as the inflation rate displays indications of easing and the economy remains stable, the Federal Open Market Committee's unanimous decision to sustain the benchmark within a targeted range of 5.25%-5.5% offers stability for homebuilders. Furthermore, members of the Federal Open Market Committee have suggested the possibility of rate cuts in the upcoming year.
Image Source: Zacks Investment Research
This civil infrastructure company has also been riding high on the back of solid demand for infrastructure services throughout end markets in both private and public sectors.
Notably, ROCK’s earnings estimates for 2024 have moved north to $4.63 per share from $4.56 over the past 30 days, depicting analysts’ optimism over the company’s prospects. This bullish trend justifies the stock’s addition to investors’ portfolios. Again, it carries an impressive VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum.
Will the Bull Run Continue?
Favorable Macro Scenario: The company’s business prospects are highly correlated with the U.S. housing market conditions and the R&R activity. Prospects of residential construction look good, given the recent Fed’s decision. The lack of existing homes for sale, improving mortgage rate scenario, along with Fed’s decision to keep the interest rate steady point to an increasingly optimistic residential construction market as we head to 2024.
Solid Public Infrastructural Spending: The company and its peers are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments. The U.S. administration’s endeavor to rebuild the nation’s deteriorating roads and bridges and fund new climate resilience and broadband initiatives is expected to aid ROCK.
Strategies: Gibraltar is progressing well, both operationally and financially, on the back of its growth strategy. The company’s Three-Pillar Strategy is mainly focused on three core tenets: Business Systems, Portfolio Management and Organizational Development. The company continues to accelerate the implementation of three pillars through portfolio management initiatives, improvement of the business system and strengthening of the organization.
Higher Return on Equity (ROE): The company’s trailing 12-month ROE is 14.5%, higher than the industry’s 11.2%. This implies that the company is getting more efficient at creating profits and increasing shareholders’ value with respect to its industry.
Other Key Picks
Here are some other top-ranked stocks from the same sector.
EMCOR Group, Inc. (EME - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter earnings surprise of 25%, on average. Shares of EME have gained 47.5% in the past year. The Zacks Consensus Estimate for EME’s 2023 sales and earnings per share (EPS) indicates an improvement of 12% and 52.8%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. It has surged 217.1% in the past year.
The Zacks Consensus Estimate for MPTI’s 2023 sales and EPS indicates growth of 30.6% and 156.7%, respectively, from the previous year.
Willdan Group, Inc. (WLDN - Free Report) currently sports a Zacks Rank of 1. WLDN delivered a trailing four-quarter earnings surprise of a whopping 850.6%, on average. The stock has gained 13% in the past year.
The Zacks Consensus Estimate for WLDN’s 2023 sales and EPS indicates growth of 14.1% and 47.7%, respectively, from a year ago.