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Universal Forest Products Rides High on Series of Events
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Shares of Universal Forest Products Inc. (UFPI - Free Report) reached a new 52-week high of $89.67 on Jun 15, before closing the trading session slightly lower at $88.73. This apex improved upon the last 52-week high of $88.91 on Apr 21.
Universal Forest Products currently offers a year-to-date return of 30.4%. The trading volume for the session was 0.19 million shares. An expected earnings growth rate of 10% for the next five years indicates the scope for further stock price appreciation.
Growth Drivers
A series of events in the last couple of months have created positive momentum for Universal Forest Products. Firstly, the company impressed its investors with a positive earnings surprise of 9.20% for first-quarter 2016. For the remaining quarters of the year, the company anticipates benefiting from product introductions, addition of assets to its portfolio and improving housing market in the U.S.
Post the quarterly results, Universal Forest Products’ brand Outdoor Essentials offered a new and improved portfolio of products to homeowners, including pergolas, wood fencing, picnic tables and mailbox posts. Also, Outdoor Essentials came up with a new brand look. Moreover, the company recently rewarded its shareholders with a semi-annual dividend payment of 42 cents per share.
Of all, we believe Universal Forest Products’ agreement to acquire certain assets of Robbins Manufacturing Co. was primarily the reason behind the surge in the company’s stock price. The transaction, likely to be completed in Aug 2016, will strengthen the company’s position in the treated wood products market in the United States.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for Universal Forest Products grew 1.4% to $1.44 per share for second-quarter 2016 and 0.7% to $1.35 per share for 2017. Also, the earnings estimates are $4.53 for 2016 and $4.86 for 2017, reflecting year-over-year growth rates of 7.8% and 7.9% respectively. Below we provide the company's price and consensus chart:
With a market capitalization of $1.8 billion, Universal Forest Products currently carries a Zacks Rank #2 (Buy). Some stocks worth considering in the machinery industry include Louisiana-Pacific Corp. (LPX - Free Report) , Armstrong Flooring, Inc. and Boise Cascade Company (BCC - Free Report) . While Louisiana-Pacific sports a Zacks Rank #1 (Strong Buy), both Armstrong Flooring and Boise Cascade carry the same Zacks Rank as Universal Forest Products.
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Universal Forest Products Rides High on Series of Events
Shares of Universal Forest Products Inc. (UFPI - Free Report) reached a new 52-week high of $89.67 on Jun 15, before closing the trading session slightly lower at $88.73. This apex improved upon the last 52-week high of $88.91 on Apr 21.
Universal Forest Products currently offers a year-to-date return of 30.4%. The trading volume for the session was 0.19 million shares. An expected earnings growth rate of 10% for the next five years indicates the scope for further stock price appreciation.
Growth Drivers
A series of events in the last couple of months have created positive momentum for Universal Forest Products. Firstly, the company impressed its investors with a positive earnings surprise of 9.20% for first-quarter 2016. For the remaining quarters of the year, the company anticipates benefiting from product introductions, addition of assets to its portfolio and improving housing market in the U.S.
Post the quarterly results, Universal Forest Products’ brand Outdoor Essentials offered a new and improved portfolio of products to homeowners, including pergolas, wood fencing, picnic tables and mailbox posts. Also, Outdoor Essentials came up with a new brand look. Moreover, the company recently rewarded its shareholders with a semi-annual dividend payment of 42 cents per share.
Of all, we believe Universal Forest Products’ agreement to acquire certain assets of Robbins Manufacturing Co. was primarily the reason behind the surge in the company’s stock price. The transaction, likely to be completed in Aug 2016, will strengthen the company’s position in the treated wood products market in the United States.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for Universal Forest Products grew 1.4% to $1.44 per share for second-quarter 2016 and 0.7% to $1.35 per share for 2017. Also, the earnings estimates are $4.53 for 2016 and $4.86 for 2017, reflecting year-over-year growth rates of 7.8% and 7.9% respectively. Below we provide the company's price and consensus chart:
UNIVL FST PRODS Price and Consensus
UNIVL FST PRODS Price and Consensus | UNIVL FST PRODS Quote
With a market capitalization of $1.8 billion, Universal Forest Products currently carries a Zacks Rank #2 (Buy). Some stocks worth considering in the machinery industry include Louisiana-Pacific Corp. (LPX - Free Report) , Armstrong Flooring, Inc. and Boise Cascade Company (BCC - Free Report) . While Louisiana-Pacific sports a Zacks Rank #1 (Strong Buy), both Armstrong Flooring and Boise Cascade carry the same Zacks Rank as Universal Forest Products.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>