LSI Industries (LYTS) and Gibraltar Industries (ROCK) Are Aggressive Growth Stocks
Brian Bolan has two building products stocks to look at in this weeks Zacks Rank Buy video. He is taking about these two stocks and points out an interesting idea related to sustained higher rates and how that has slowed home purchases yet these two names have both recently posted good earnings and are moving higher.
First up is LSI Industries LYTS and they make lighting systems homes and businesses. Brian reviews their earnings history and likes the positive momentum that is shown as the last three beats have been larger on an absolute basis.
LSI Industries LYTS is looking at 4% topline growth this year, but that is expected to increase by more than two times next year to 9%.
A quick review of the financial overview tells us that at 14x this stock carries a good valuation.
Next up is Gibraltar Industries ROCK and it is, as almost all of the stocks on the Aggressive Growth Rank Buy videos, a Zacks Rank #1 (Strong Buy) and it also has an A for Growth in the Zacks Style Score.
Just as LYTS has seen a good earnings history, Gibraltar Industries ROCK has also seen 4 straight beats of the Zacks Consensus Estimate. They have also seen an increase on an absolute basis as well.
ROCK has seen a little revenue contraction on a year over year basis, but both stocks have posted good sequential growth and that implies that business is getting better. ROCK has higher multiples than LYTS but both are seeing good margin expansion.
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Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
LSI Industries Inc. (LYTS) : Free Stock Analysis Report
