AZEK Inks Deal With Plaskolite to Sell Its Vycom Business
The AZEK Company Inc. AZEK signs a definitive agreement with Plaskolite, LLC, to sell its Commercial segment's Vycom business. The deal, set to conclude on Nov 1, 2023, signifies AZEK's commitment to its streamlined business vision.
This deal simplifies AZEK's portfolio, allowing it to further focus on high-growth areas like repair and remodel or R&R and outdoor living within the Residential segment. The move empowers AZEK to concentrate on key sectors, including Deck, Rail and Accessories, and Exteriors. The company's strong financial position ensures flexibility for this strategic move.
Plaskolite, the Ohio-based global leader in manufacturing engineering thermoplastics, will now oversee Vycom, further enhancing its portfolio significantly. This acquisition allows Plaskolite to cater better to its customers by providing a wide range of thermoplastic solutions.
Share Price Performance
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Shares of the company have gained 67.4% over the past year compared with the Zacks Building Products - Air Conditioner and Heating industry’s 60.9% rise. The company has benefited from its growth and productivity initiatives, operational performance, and double-digit residential sell-through.
Despite an uncertain R&R market, the company's Deck, Rail & Accessories and Exteriors categories witnessed strong sell-through growth in the third-quarter fiscal 2023. The growth is driven by wood conversion and new business wins. The company remains optimistic about its resilient business model, expecting to outgrow its portfolio's underlying R&R market through material conversion and various growth initiatives.
Zacks Rank & Other Key Picks
AZEK currently carries a Zacks Rank #1 (Strong Buy).
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Construction Partners, Inc. ROAD sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. ROAD has a trailing four-quarter earnings surprise of 10.6% on average. Shares of ROAD have gained 44% in the past year.
The Zacks Consensus Estimate for ROAD’s 2023 sales and earnings per share (EPS) indicates gains of 19.3% and 112.2%, respectively, from the year-ago period’s levels.
TopBuild Corp. BLD sports a Zacks Rank of #2 (Buy). It has a trailing four-quarter earnings surprise of 14.1%, on average. Shares of BLD have surged 50.1% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gains of 3.3% and 8.4%, respectively, from the year-ago period’s levels.
EMCOR Group, Inc. EME carries a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 69.8% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
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