NCI Building (NCS) Changes Reportable Business Segments

NCI Building Systems, Inc. (NYSE:NCS) has modified its business segments from three reportable divisions to four new segments. This strategic move is in sync with the company’s attempt to manage its business by focusing on operating performance and allocating resources.

Per the announcement, the company will start reporting results under four segments, including Engineered Building Systems, Metal Components, Insulated Metal Panels and Metal Coil Coating. Earlier, operating results for the Insulated Metal Panel product line were included in the Metal Components segment.

In addition, CENTRIA's coil-coating operations which have been included in the Metal Components segment since NCI Building's acquisition of CENTRIA in 2015, will now be reported within the Metal Coil Coating segment.

NCI Building Systems, Inc. Price

NCI Building Systems, Inc. Price | NCI Building Systems, Inc. Quote

NCI Building will begin reporting its financial results under the new reportable segments with the filing of Form 10-Q for the quarter ending Jan 28, 2018. The company will also recast two years of historical financial results for the previously-reported quarterly and annual periods for fiscal 2016 and 2017, reflecting the four new business segments.

Moreover, the company is focused on investments in automation and process innovation which will slash operating costs, improve margins, quality and service, as well as enhance operational flexibility. The company will gain from focus on continued improvement in manufacturing, and delivering cost reductions with the Lean and Six Sigma initiatives across the entire business.

However, NCI Building’s shares have underperformed the industry it belongs to over the past year due to escalating steel prices. The company’s shares have gained 5.3% compared to 16.5% growth recorded by the industry.

Zacks Rank & Key Picks

NCI Building currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the same sector include United Rentals, Inc. (NYSE:URI) , Patrick Industries, Inc. (NASDAQ:PATK) and Masco Corporation (NYSE:MAS) . While United Rentals and Patrick Industries sport a Zacks Rank #1 (Strong Buy), Masco Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

United Rentals has a long-term earnings growth rate of 18.5%. Its shares have appreciated 61.8%, over the past six months.

Patrick Industries has a long-term earnings growth rate of 11.1%. The company’s shares have been up 27.6% during the same time frame.

Masco Corporation has a long-term earnings growth rate of 15.6%. The stock has gained 23.3% in six months’ time.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>