Here’s Why You Should Consider Investing in Carlisle (CSL) – Zacks Investment Research

Carlisle Companies Incorporated (CSL Quick QuoteCSL – Free Report) currently boasts robust prospects on strength in its businesses, solid product portfolio, acquired assets and a sound capital-deployme…….

Carlisle Companies Incorporated (CSL Free Report) 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 #1 (Strong Buy) company has a market capitalization of $12.7 billion. In the past three months, it has gained 5.3% against the industry’s decline of 3.3%.

Let’s delve into the factors that make the company a smart investment choice at the moment.

Business Strength: Carlisle stands to benefit from solid momentum in the reroofing market in the United States and growing demand for energy-efficient building products. In the quarters ahead, strength in the company’s medical technologies business and improvement in the commercial aerospace business are expected to be beneficial. Also, its focus on product introductions and strength across its newer platforms of Sealants & Adhesives, Foam and Powder bode well. For 2022, it expects revenue to grow more than 30% year over year.

Benefits From Acquisitions:  CSL focuses on strengthening and expanding its businesses through the acquisition of assets. Its Henry Company acquisition (September 2021) boosted its product offerings for construction activities. The buyout is expected to boost its 2022 earnings by $1.50 per share. Also, its acquisition of MBTechnology, Inc. (February 2022) is likely to strengthen its building products platform. Buyouts contributed 14.7% to revenue growth in the first quarter of 2022.

Shareholder-Friendly Policies: It rewards shareholders through share repurchases and dividend payouts. In the first three months of 2022, the company paid out dividends worth $28.7 million and repurchased shares worth $125 million. Also, it hiked the quarterly dividend rate by 3% in August 2021. Exiting first-quarter 2022, the company had $4.5 million worth of shares left under its share repurchase authorization.

Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for Carlisle’s 2022 earnings has trended up from $14.39 to $17.64 on two upward estimate revisions against none downward. Over the same timeframe, the consensus estimate for 2023 earnings has jumped from $16.15 to $19.50 on two upward estimate revisions versus none downward.

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