We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Carlisle Benefits From Business Strength Amid Persisting Headwinds
Read MoreHide Full Article
Carlisle Companies Incorporated (CSL - Free Report) has been benefiting from strength in the Construction Materials segment, driven by the solid demand for reroofing products. Growing re-roof activity and inventory normalization in the non-residential construction market have been driving the segment’s performance. Driven by the strength across its businesses, CSL projects revenues to increase 10% in 2024 from the year-ago level.
The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In October 2024, it entered into an agreement to acquire Plasti-Fab. The buyout is expected to expand its building envelope product portfolio and strengthen its position in the North American polystyrene insulation market.
In May 2024, Carlisle acquired MTL Holdings from GreyLion Partners. The inclusion of MTL’s solid pre-fabricated edge metal products portfolio enabled CSL to expand its customer offerings and boost its architectural metals business. Also, its buyout of Polar Industries in November 2023 expanded its polystyrene and graphite polystyrene portfolio, thereby boosting its Weatherproofing Technologies segment. Buyouts had a positive impact of 2% on net sales growth in the nine months of 2024.
The company also remains committed to rewarding its shareholders with dividend payouts and share buybacks. For instance, in the first nine months of 2024, it remunerated its shareholders with a dividend of $127.4 million and repurchased shares worth $1.17 billion. Also, the quarterly dividend rate was hiked 18% in August 2024.
CSL Stock’s Price Performance
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company’s shares have gained 10.4% against the industry’s 8.2% decline.
However, the slowdown in the residential construction market and project delays are adversely affecting the Weatherproofing Technologies segment. In the third quarter, organic revenues from the segment declined 4% on a year-over-year basis.
The company has been dealing with escalating operating costs and expenses. In the first nine months of 2024, its selling and administrative expenses and cost of sales rose 17.2% and 6.8%, respectively, on a year-over-year basis.
Also, the high debt level is an added concern. Exiting the third quarter, CSL’s long-term debt and current maturities totaled $2.3 billion. Considering the high debt level, its cash and cash equivalents of $1.5 billion do not look impressive.
Key Picks
Some better-ranked stocks from the same space are presented below.
GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.
Federal Signal Corporation (FSS - Free Report) presently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 11.8%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2024 earnings has increased 3.1%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 2.5%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has increased 1.3%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Carlisle Benefits From Business Strength Amid Persisting Headwinds
Carlisle Companies Incorporated (CSL - Free Report) has been benefiting from strength in the Construction Materials segment, driven by the solid demand for reroofing products. Growing re-roof activity and inventory normalization in the non-residential construction market have been driving the segment’s performance. Driven by the strength across its businesses, CSL projects revenues to increase 10% in 2024 from the year-ago level.
The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In October 2024, it entered into an agreement to acquire Plasti-Fab. The buyout is expected to expand its building envelope product portfolio and strengthen its position in the North American polystyrene insulation market.
In May 2024, Carlisle acquired MTL Holdings from GreyLion Partners. The inclusion of MTL’s solid pre-fabricated edge metal products portfolio enabled CSL to expand its customer offerings and boost its architectural metals business. Also, its buyout of Polar Industries in November 2023 expanded its polystyrene and graphite polystyrene portfolio, thereby boosting its Weatherproofing Technologies segment. Buyouts had a positive impact of 2% on net sales growth in the nine months of 2024.
The company also remains committed to rewarding its shareholders with dividend payouts and share buybacks. For instance, in the first nine months of 2024, it remunerated its shareholders with a dividend of $127.4 million and repurchased shares worth $1.17 billion. Also, the quarterly dividend rate was hiked 18% in August 2024.
CSL Stock’s Price Performance
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company’s shares have gained 10.4% against the industry’s 8.2% decline.
However, the slowdown in the residential construction market and project delays are adversely affecting the Weatherproofing Technologies segment. In the third quarter, organic revenues from the segment declined 4% on a year-over-year basis.
The company has been dealing with escalating operating costs and expenses. In the first nine months of 2024, its selling and administrative expenses and cost of sales rose 17.2% and 6.8%, respectively, on a year-over-year basis.
Also, the high debt level is an added concern. Exiting the third quarter, CSL’s long-term debt and current maturities totaled $2.3 billion. Considering the high debt level, its cash and cash equivalents of $1.5 billion do not look impressive.
Key Picks
Some better-ranked stocks from the same space are presented below.
Graham Corporation (GHM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.
Federal Signal Corporation (FSS - Free Report) presently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 11.8%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2024 earnings has increased 3.1%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 2.5%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has increased 1.3%.