Yahoo Finance Beacon (BECN) Opens Two Branches in Texas, Boosts Ambition 2025
Beacon Roofing Supply, Inc. BECN recently announced the opening of two new branches at greenfield locations in Baytown and suburban Forth Worth, TX. The Baytown branch serves the greater Houston market, reaching Harris and Chambers counties and the Galveston Bay region while the services of the Forth Worth branch extend to the west side at the busy crossroads of Highways 820 and 30.
These two branches take the total number of branches to 34 across Texas. The branches offer services and products, namely leading brands of residential and commercial roofing and complementary products that include TRI-BUILT products of Beacon as well. The company also offers online services like the leading digital platform, Beacon PRO+, along with offline services.
Strategic Initiatives to Drive Growth
The company has over 480 branches in 50 states of the United States and six provinces in Canada. The company’s organic as well as non-organic approach of business expansion acts as its driving force. During the first nine months of 2022, residential roofing product sales increased 21.7%, non-residential roofing product sales increased 47.4%, and complementary product sales increased 18.5% compared to the comparable prior year period.
On Jan 4, 2023, the company announced the buyout of First Coastal Exteriors, LLC. Notably, First Coastal serves in Mobile, AL and Pearl, MS. First Coastal distributes complementary residential and commercial building products, including siding, gutter products, and windows. This buyout will strengthen the complementary line of business in Southeast. On Jan 3, 2023, Beacon acquired Boston’s distributor of commercial and multifamily waterproofing and restoration products — Whitney Building Products, LLC.With an experience of more than 75 years of serving the construction and restoration industry in New England, Whitney is a solid addition to Beacon’s portfolio. These moves are in line with Beacon’s Ambition 2025 investment strategy.
The company currently has been focusing on its Ambition 2025 targets (announced on Feb 24, 2022), which emphasize on operational excellence, an above-market growth trajectory and accelerated stockholder value creation. The financial targets of Ambition 2025 assume that sales will reach $9 billion (8% CAGR) and $1 billion of EBITDA (10% CAGR), which would translate into 11% EBITDA margins (up 100 basis points from 2021).
Shares of the company have declined 1.6%, compared with the Zacks Building Products-Retail industry’s decline of 9.7%, in the past year.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail-Wholesale sector are MercadoLibre, Inc. MELI, Casey's General Stores, Inc. CASY and Expedia Group, Inc. (EXPE)
MercadoLibre currently has a Zacks Rank #1. MELI’s stock has increased 35.9% in the past six-month period.
The Zacks Consensus Estimate for MELI’s 2023 sales and earnings per share (EPS) indicates growth of 19.7% and 80.7%, respectively.
Casey's General Stores currently has a Zacks Rank #1. CASY has a trailing four-quarter earnings surprise of 7.2%. The shares of the company have increased 27.1% in the past year.
The Zacks Consensus Estimate for CASY’s fiscal 2023 sales and earnings indicates a rise of 23.1% and 18.4%, respectively, from the year-ago period’s estimated levels.
Expedia carries a Zacks Rank #1. EXPE has a long-term earnings growth rate of 14%. The stock has risen 10.1% in the past three-month period.
The Zacks Consensus Estimate for EXPE’s 2023 sales and EPS indicates growth of 9.4% and 20.3%, respectively, from the year-ago period’s expected levels.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
