Carlisle Companies Incorporated CSL currently boasts robust prospects on strength in its businesses, solid product portfolio, acquired assets and a sound capital-deployment strategy.
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The Zacks Rank #2 (Buy) company has a market capitalization of $12.2 billion. In the past six months, it has gained 20.9% against the industry’s decline of 7.6%.
Let’s delve into the factors that make the company investment-worthy at the moment.
Business Strength: Carlisle has been benefiting from strengthening the reroofing market in the United States and growth in the polyurethane and architectural metals platform. Strength in the company’s medical business and recovery in the commercial aerospace business in the United States is likely to drive its performance in the quarters ahead. Also, its focus on product introductions and strength across its newer platforms of Sealants & Adhesives, Foam and Powder are likely to be tailwinds. For 2021, it expects revenue growth in the high-teens range.
Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. Some of the notable buyouts made by the company over the past couple of years are Petersen, MicroConnex, Ecco Finishing and Providien. Also, its buyout of California-based Henry Company (in September 2021) is expected to strengthen its product offerings for construction activities. It expects the Henry buyout to boost its earnings by $1.25 per share in 2022. Acquisitions contributed 0.4% and 4.8% to revenue growth in the second and third quarters of 2021, respectively.
Rewards to Shareholders: It remains committed to rewarding shareholders through share repurchases and dividend payouts. In the first nine months of 2021, the company repurchased shares worth $290.6 million and paid out dividends worth $84.2 million. Also, in August 2021, it announced a 3% hike in its quarterly dividend rate. In addition to its existing share repurchase authorization, the company approved the repurchase of 5 million shares in February 2021.
Estimate Revisions: In the past 60 days, analysts have increasingly become bullish on Carlisle, as evident from positive earnings estimate revisions. The Zacks Consensus Estimate for its 2021 earnings has trended up from $9.17 to $9.21 on two upward estimate revisions against none downward. Over the same timeframe, the consensus estimate for 2022 earnings has jumped from $12.44 to $13.05 on one upward estimate revision against none downward.
Other Key Picks
Some other top-ranked companies are discussed below.
SPX FLOW, Inc. FLOW presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 40.42%, on average.
In the past 30 days, SPX FLOW’s earnings estimates have increased 8% for 2021 and 17.9% for 2022. Its shares have gained 24.3% in the past six months.
Crane Co. CR presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 22.02%, on average.
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Welbilt, Inc. WBT presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 172.50%, on average.
Welbilt’s earnings estimates have increased 3.2% for 2021 and 5.9% for 2022 in the past 30 days. Its shares have lost 4.4% in the past six months.
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Carlisle Companies Incorporated (CSL): Free Stock Analysis Report
SPX FLOW, Inc. (FLOW): Free Stock Analysis Report
Crane Co. (CR): Free Stock Analysis Report
Welbilt, Inc. (WBT): Free Stock Analysis Report
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