Yahoo Finance Reasons Why Carlisle (CSL) Should Be in Your Portfolio Now
Carlisle Companies Incorporated CSL stands to benefit from strength across its businesses, acquired assets, strong product line and focus on operational excellence.
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The company has a market capitalization of $19.3 billion. Over the past year, its shares have gained 57.2% compared with the industry’s 11.6% growth. CSL currently carries a Zacks Rank #2 (Buy).
Let’s delve into the factors that have been aiding the firm for a while now.
Business Strength: Carlisle is witnessing strength in the Construction Materials segment, driven by the solid demand for reroofing products. Strength in the non-residential construction market, supported by inventory normalization and growing re-roof activity, has been driving the segment’s performance. Its Weatherproofing Technologies segment is also performing well on the back of strong repair and remodel demand across the building envelope in the residential market. Given its strength across its businesses, Carlisle expects overall revenues to increase 10% in 2024 from the year-ago levels.
Acquisition Benefits: The company believes in adding complementary businesses to its portfolio via acquisitions. In March 2024, Carlisle signed a deal to acquire MTL Holdings from GreyLion Partners. The inclusion of MTL’s solid pre-fabricated edge metal products portfolio should enable CSL to expand its customer offerings and boost its architectural metals business.
Also, the acquisition of MBTechnology in February 2022 strengthened the Construction Materials segment's building products platform, boosting its energy-efficient solution offerings.
Shareholder-Friendly Moves: CSL remains focused on increasing its shareholders’ wealth through dividend payouts and share buybacks. For instance, in the first quarter of 2024, it paid out a dividend of $41.5 million and bought back shares worth $150 million. The quarterly dividend rate was hiked 13% in August 2023.
Also, in 2023, it rewarded its shareholders with a dividend payout of $160.3 million and repurchased shares worth $900 million.
Business Initiatives: Under the Vision 2030 program, management seeks to achieve above-market organic growth, focus on product innovation and deliver a solid adjusted EBITDA margin, apart from returning cash to its shareholders. The contributions from the Carlisle Operating System and price realization are supporting the company’s margins. For instance, in the first quarter, its adjusted EBITDA margin expanded 530 basis points year over year.
Other Stocks to Consider
Some other top-ranked companies from the same space are discussed below:
Griffon Corporation GFF presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter average earnings surprise of 33.5%. In the past 30 days, the Zacks Consensus Estimate for GFF’s 2024 earnings has increased 4.2%.
Federal Signal Corporation FSS presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.6%. The Zacks Consensus Estimate for FSS’ 2024 earnings has inched up 0.3% in the past 30 days.
ITT Inc. ITT currently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 6.5%. In the past 30 days, the consensus estimate for ITT’s 2024 earnings has remained stable.
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