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Beacon (BECN) Expands Footprint With New Branch Openings
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In line with its Ambition 2025 plan, Beacon Roofing Supply, Inc. (BECN - Free Report) expands its footprint by opening new locations in Dieppe, New Brunswick, Canada and Spring Lake Park, MN. These branches aim to support building and roofing contractors, serving residential and commercial sectors.
BECN’s new Dieppe branch expands its presence in the seventh Canadian province, serving the Atlantic Canada region. The branch is strategically positioned to tap into the region's growing construction sector driven by population growth, offering a diverse range of residential and commercial roofing products.
The new Spring Lake Park branch in Minnesota offers residential and commercial roofing, along with complementary products and services in the north Minneapolis metro market. Construction trends in the area require specialized building materials and services, which BECN provides. Contractors can benefit from BECN's commitment to customer success, including the industry-leading Beacon PRO+ app for online ordering and delivery tracking.
The company expanded its footprint by opening five new locations and completing two acquisitions, adding seven branches to date in 2024. The company signed a purchase agreement for a third acquisition. BECN continues to deliver on its commitments to drive above-market growth for better customer service. It surpassed its Ambition 2025 revenues and shareholder return targets two years ahead of schedule and is progressing toward achieving its full plan.
Focus on Expansion
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience. One of the primary initiatives includes footprint expansion and increasing its market reach. The company has been focusing on this initiative since the launch of its Ambition 2025 targets, which include operational excellence, above-market growth trajectory and accelerated stockholder value creation.
Apart from focusing on organic moves to expand its business and boost its growth prospects, Beacon also engages in bolt-on acquisitions and divestitures. In 2023, it acquired 21 branches and opened 28 greenfield locations in key markets, enhancing customer reach and service. The acquisition portfolio is performing well and contributed approximately $370 million to net sales for the year. This expands the company’s ability to serve customers nationwide, complementing its Greenfield strategy.
As its footprint expansion initiatives bode well for growth momentum, Beacon intends to continue its focus on expansion to drive growth through acquisitions and the addition of greenfield locations. The company plans to open 25 new locations in 2024.
Price Performance
Image Source: Zacks Investment Research
Shares of this distributor of residential and non-residential roofing materials have increased 75.4% in the past year, outperforming the Zacks Building Products - Retail industry’s 25.5% growth. The company is benefiting from the effective implementation of its Ambition 2025 targets and cost-reduction initiatives. Its focus on strategic acquisitions, along with investments in digital and productivity enhancements, is encouraging for its prospects.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail-Wholesale sector have been discussed below.
It has a trailing four-quarter earnings surprise of 715.6%, on average. The stock has risen 323.4% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) implies growth of 5.6% and 19.1%, respectively, from the year-ago levels.
Burlington Stores, Inc. (BURL - Free Report) currently flaunts a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.1%, on average. The stock has risen 21.8% in the past year.
The Zacks Consensus Estimate for BURL’s fiscal 2024 sales and EPS indicates a rise of 10.2% and 22.3%, respectively, from the year-ago levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has risen 131.7% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS implies a decline of 0.3% and 4.9%, respectively, from the year-ago levels.
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Beacon (BECN) Expands Footprint With New Branch Openings
In line with its Ambition 2025 plan, Beacon Roofing Supply, Inc. (BECN - Free Report) expands its footprint by opening new locations in Dieppe, New Brunswick, Canada and Spring Lake Park, MN. These branches aim to support building and roofing contractors, serving residential and commercial sectors.
BECN’s new Dieppe branch expands its presence in the seventh Canadian province, serving the Atlantic Canada region. The branch is strategically positioned to tap into the region's growing construction sector driven by population growth, offering a diverse range of residential and commercial roofing products.
The new Spring Lake Park branch in Minnesota offers residential and commercial roofing, along with complementary products and services in the north Minneapolis metro market. Construction trends in the area require specialized building materials and services, which BECN provides. Contractors can benefit from BECN's commitment to customer success, including the industry-leading Beacon PRO+ app for online ordering and delivery tracking.
The company expanded its footprint by opening five new locations and completing two acquisitions, adding seven branches to date in 2024. The company signed a purchase agreement for a third acquisition. BECN continues to deliver on its commitments to drive above-market growth for better customer service. It surpassed its Ambition 2025 revenues and shareholder return targets two years ahead of schedule and is progressing toward achieving its full plan.
Focus on Expansion
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience. One of the primary initiatives includes footprint expansion and increasing its market reach. The company has been focusing on this initiative since the launch of its Ambition 2025 targets, which include operational excellence, above-market growth trajectory and accelerated stockholder value creation.
Apart from focusing on organic moves to expand its business and boost its growth prospects, Beacon also engages in bolt-on acquisitions and divestitures. In 2023, it acquired 21 branches and opened 28 greenfield locations in key markets, enhancing customer reach and service. The acquisition portfolio is performing well and contributed approximately $370 million to net sales for the year. This expands the company’s ability to serve customers nationwide, complementing its Greenfield strategy.
As its footprint expansion initiatives bode well for growth momentum, Beacon intends to continue its focus on expansion to drive growth through acquisitions and the addition of greenfield locations. The company plans to open 25 new locations in 2024.
Price Performance
Image Source: Zacks Investment Research
Shares of this distributor of residential and non-residential roofing materials have increased 75.4% in the past year, outperforming the Zacks Building Products - Retail industry’s 25.5% growth. The company is benefiting from the effective implementation of its Ambition 2025 targets and cost-reduction initiatives. Its focus on strategic acquisitions, along with investments in digital and productivity enhancements, is encouraging for its prospects.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail-Wholesale sector have been discussed below.
Abercrombie & Fitch Co. (ANF - Free Report) currently sports a Zacks Rank of 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 715.6%, on average. The stock has risen 323.4% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) implies growth of 5.6% and 19.1%, respectively, from the year-ago levels.
Burlington Stores, Inc. (BURL - Free Report) currently flaunts a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.1%, on average. The stock has risen 21.8% in the past year.
The Zacks Consensus Estimate for BURL’s fiscal 2024 sales and EPS indicates a rise of 10.2% and 22.3%, respectively, from the year-ago levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has risen 131.7% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS implies a decline of 0.3% and 4.9%, respectively, from the year-ago levels.