Reasons to Add Carlisle (CSL) Stock to Your Portfolio Now
Carlisle Companies Incorporated CSL is well-poised for growth courtesy of strength across its end markets, strategic acquisitions and its focus on improving the product line and operational excellence.
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The company has a market capitalization of $14.7 billion. Over the past six months, it has gained 19.6% compared with the industry’s growth of 1.2%. CSL currently carries a Zacks Rank #2 (Buy).
Let’s delve into the factors that have been aiding the firm for a while now.
Business Strength: Carlisle's diversified business structure enables it to tap opportunities and neutralize operating risks associated with a single market. Solid demand for reroofing products bodes well for the company’s Construction Materials segment. Its Weatherproofing Technologies segment is also poised to benefit from repair and remodel demand across the building envelope in both commercial and residential markets.
Portfolio Restructuring Benefits: The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. The acquisition of MBTechnology in February 2022 strengthened its Construction Materials segment's building products platform, boosting its energy-efficient solution offerings.
This apart, in October 2023, Carlisle announced that it is commencing a process to sell the Interconnect Technologies segment. In the same month, the company divested its Fluid Technologies segment. The divestment will allow it to focus on its core businesses.
Shareholder-Friendly Policies: CSL remains committed to rewarding its shareholders through dividend payouts and share buybacks. For instance, in the first nine months of 2023, Carlisle rewarded its shareholders with a dividend payout of $119.3 million, up 24.8% year over year. The amount spent on share buyback totaled $580 million, up more than 100% year over year. It hiked its dividend by 13% to 85 cents per share in August 2023.
Business Initiatives: Under the Vision 2030 program, Carlisle seeks to achieve above-market organic growth, focus on product innovation and deliver a solid Adjusted EBITDA margin, apart from returning cash to its shareholders. The contribution from Carlisle Operating System and price realization are supporting the company’s margins. Its operating margin increased 220 basis points year over year in the third quarter of 2023.
Other Key Picks
Some other top-ranked companies from the same space are discussed below:
Griffon Corporation GFF presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter average earnings surprise of 28.6%. The Zacks Consensus Estimate for GFF’s fiscal 2024 earnings has increased 13% in the past 60 days. Shares of Griffon have surged 45.8% in the past six months.
Federal Signal Corporation FSS presently has a Zacks Rank #2. FSS delivered a trailing four-quarter average earnings surprise of 8.1%.
In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 2.5%. The stock has risen 16.1% in the past six months.
ITT Inc. ITT currently carries a Zacks Rank #2. The company delivered a trailing four-quarter average earnings surprise of 8%.
In the past 60 days, the Zacks Consensus Estimate for ITT’s 2023 earnings has increased 1.6%. The stock has risen 24% in the past six months.
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ITT Inc. (ITT) : Free Stock Analysis Report
Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
Federal Signal Corporation (FSS) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
