Carlisle Companies Incorporated (NYSE:CSL) has impressed investors with its recent earnings streak, having surpassed estimates thrice in the four trailing quarters. The company’s share price increase reflects its impressive performance, exhibiting investor optimism over the stock. Over the past three months, the company has gained 11.3% against the industry’s decline of 3.3%.
The stock currently sports a Zacks Rank #1 (Strong Buy).We believe that its notable traction across markets will drive growth in the upcoming quarters.
Factors to Consider
Carlisle’s diversified business structure enables it to tap opportunities and neutralize operating risks associated with a single market. Of late, one of the company’s major segments — Carlisle Construction Materials — has been performing exceedingly well. For instance, in the first quarter of 2019, the segment’s performance was strong owing to impressive organic growth, solid backlog, high volume of reroofing projects in the North American non-residential construction markets, and the acquisition of Petersen Aluminum Corporation (January 2019).
Also, driven by continued operational improvements, including cost savings from the Carlisle Operating System and overall positive market conditions, the company anticipates overall revenue growth to be in the high single-digit for 2019. Further, strength in aerospace and defense markets as well as solid med-tech platform and SatCom markets have set the tone for strong future growth.
Moreover, Carlisle remains highly committed toward increasing wealth of its shareholders through share repurchase programs and dividends. In this regard, in the first quarter, the company repurchased approximately $157 million of its shares and distributed dividends totaling $23 million. Such diligent capital deployment strategies boost shareholders' wealth.
In addition, analysts have become increasingly bullish on Carlisle in the past couple of months. Consequently, the Zacks Consensus Estimate for 2019 earnings has trended up from $7.41 to $7.80 on the back of four upward estimate revisions.
Other Key Picks
Some other top-ranked stocks in the same space are HC2 Holdings, Inc. (NYSE:HCHC) , Federal Signal Corporation (NYSE:FSS) and Honeywell International Inc. (NYSE:HON) . While HC2 Holdings sports a Zacks Rank #1 (Strong Buy), Federal Signal and Honeywell carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HC2 Holdings’ earnings surprise in the last reported quarter was 92.73%.
Federal Signal surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 21.75%.
Honeywell outpaced estimates in each of the preceding four quarters, the average earnings surprise being 3.50%.
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Carlisle Companies Incorporated (CSL): Free Stock Analysis Report
Honeywell International Inc. (HON): Free Stock Analysis Report
Federal Signal Corporation (FSS): Free Stock Analysis Report
HC2 Holdings, Inc. (HCHC): Free Stock Analysis Report
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