Patrick's (PATK) Rockford Partners With Thumper Fabrication
Patrick Industries, Inc.’s PATK wholly-owned subsidiary, Rockford Fosgate, recently collaborated with Thumper Fabrication to offer approved retailers access to its SXS and UTV products. This strategic partnership is set to transform the SXS audio market.
This collaboration aligns with Rockford’s growth and consumer-expansion strategy. Thumper Fabrication’s remarkable customer service accompanied by efficient logistics and top-tier motorsports marketing make it the best partner to help Rockford expand its SXS and UTV presence.
The company has optimistic views on the newly grounded partnership, as it believes this will help it reach strategic markets and serve a focused customer base with its renowned authenticity and excellence.
Patrick’s Growth-Boosting Approach
Patrick pivots around strategies, which ensure operational excellence, increase in customer reach and long-term growth. Its primary focus comprises accretive acquisitions, strategic diversification and efficient capital allocation.
The company indulges in profitable acquisitions, which enable it to reach new markets and customer bases along with housing a diversified product portfolio. The versatility of its brands helps it to gain market share and maintain its growth momentum despite the uncertain macro environment. During the first six months of 2023, the company completed three acquisitions, which contributed about $2.3 million to the consolidated net sales for the same time period.
Apart from buyouts, Patrick’s focus on strategic diversification, primarily across leisure lifestyle and housing markets, has positioned it to deliver growth in the gross margin in this challenging economic scenario. In the second quarter of 2023, the company’s gross margin expanded by 60 basis points to 22.8%. Also, the company’s disciplined capital-allocation strategy allows it to maintain a stable balance between offering shareholder value and strategic business growth.
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Shares of PATK surged 61.4% in the past year, outperforming the Zacks Building Products - Mobile Homes and RV Builders industry’s 16.3% growth.
Zacks Rank
Patrick currently carries a Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks from the Construction sector are Installed Building Products, Inc. IBP, Construction Partners, Inc. ROAD and Toll Brothers, Inc. TOL.
Installed Building currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IBP delivered a trailing four-quarter earnings surprise of 5.5%, on average. Shares of the company have risen 44.4% in the past year. The Zacks Consensus Estimate for IBP’s 2023 sales and earnings per share (EPS) indicates growth of 4.7% and 8.6%, respectively, from the previous year’s reported levels.
Construction Partners currently sports a Zacks Rank of 1. ROAD delivered a trailing four-quarter earnings surprise of 10.6%, on average. Shares of the company have gained 39% in the past year.
The Zacks Consensus Estimate for ROAD’s fiscal 2024 sales and EPS indicates growth of 19.3% and 112.2%, respectively, from the previous year’s reported levels.
Toll Brothers currently sports a Zacks Rank of 1. TOL delivered a trailing four-quarter earnings surprise of 31.4%, on average. Shares of the company have surged 72.4% in the past year.
The Zacks Consensus Estimate for TOL’s fiscal 2024 sales and EPS indicates growth of 4% and 1.5%, respectively, from the previous year’s reported levels.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
