Beacon (BECN) on Expansion Spree, Unveils Two New Locations
Beacon Roofing Supply, Inc. BECN unveiled its branches in two new locations, Conroe, TX, and Goldsboro, NC, at the end of December 2023.
BECN’s new Texas branch is positioned in the Houston metropolitan area, aiming to satiate the demands of the growing population. This will be done by supporting the area’s contractors through the residential and commercial roofing products and services.
On the other hand, the new North Carolina branch is set up to focus on the demands of the lumberyard customers. Beacon is ready to meet this area’s customer needs with its product range, delivery fleet and specialized employees.
This strategic expansion initiative aligns with its Ambition 2025 plan as well as its goal of driving above-market growth to better serve customers.
Expansion Initiatives Bode Well
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience. One of the primary initiatives includes footprint expansion and increasing its market reach. The company has been focusing on this initiative since the launch of its Ambition 2025 targets, which include operational excellence, above-market growth trajectory and accelerated stockholder value creation.
Beacon has been focusing on business expansion through bolt-on acquisitions and divestitures along with new branch openings. During 2023, the company expanded its footprint by adding 49 branches, having a mix of 28 new locations and acquisition of 21 branches through nine transactions.
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Shares of this publicly-traded distributor of residential and non-residential roofing materials rose 52.3% in the past year, outperforming the Zacks Building Products - Retail industry’s 11.7% growth. As its footprint expansion initiatives bode well for growth momentum, Beacon intends to continue its focus on expansion to drive growth through acquisitions and the addition of greenfield locations.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Retail-Wholesale sector.
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It has a trailing four-quarter earnings surprise of 80.8%, on average. The stock has risen 19.9% in the past year. The Zacks Consensus Estimate for SHAK’s 2024 sales and earnings per share (EPS) indicates an increase of 15.2% and 39%, respectively, from the year-ago levels.
Arcos Dorados Holdings Inc. ARCO currently flaunts a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has risen 39% in the past year.
The Zacks Consensus Estimate for ARCO’s 2024 sales and EPS indicates a rise of 10.6% and 15.5%, respectively, from the year-ago levels.
The Gap, Inc. GPS currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 137.9%, on average. The stock has risen 52.6% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales implies an improvement of 0.9% from the year-ago level. The consensus estimate for EPS indicates a decline of 0.7% from the year-ago actuals.
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The Gap, Inc. (GPS) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
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Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
