Here's Why Investors Should Consider Retaining Carlisle Stock Now

Carlisle Companies Incorporated CSL is witnessing solid momentum in the Construction Materials segment. Higher sales in the non-residential construction market in the United States and Europe, driven by the acquisition of MTL and growing re-roof activity as a result of pent-up demand, have been driving the segment’s performance. In the first quarter of 2025, revenues from the segment increased 2% year over year.Backed by strong contractor backlogs and growing customer demand, the company expects the segment’s revenues to increase in the mid-single digits year over year in 2025. Driven by strength across its businesses, the company continues to anticipate total revenues to increase in mid-single digit in 2025.The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In February 2025, CSL completed the acquisition of ThermaFoam, which enabled it to strengthen its portfolio of polystyrene insulation products. The buyout expanded the company’s customer offerings and enhanced its presence in Texas and the South-Central United States market.Also, CSL’s acquisition of Plasti-Fab (in December 2024) expanded its building envelope product portfolio and strengthened its position in the North American polystyrene insulation market. Also, its acquisition of MTL Holdings in May 2024 expanded its customer offerings and boosted its architectural metals business. Buyouts had a positive impact of 4.6% on net sales growth in the first quarter of 2025.Management remains focused on rewarding its shareholders through dividend payouts. In first-quarter 2025, it rewarded its shareholders with a dividend payment of $45.2 million, an increase of 8.9% year over year. In the same period, it repurchased shares worth $400 million, up 166.5% year over year. At the end of first quarter, Carlisle was left to buy back 2.3 million shares.CSL’s Price PerformanceImage Source: Zacks Investment ResearchIn the past three months, the Zacks Rank #3 (Hold) company has gained 8.2% against the industry’s 3.4% decline.Despite the positives, persistent softness in the Weatherproofing Technologies segment, owing to lower volumes from a slowdown in the residential construction market and project delays, is adversely affecting Carlisle’s performance. The slowdown in new housing, repair and remodel activities due to high interest rates and affordability challenges is concerning. In the first quarter, organic revenues from the segment fell 11.7% on a year-over-year basis.Carlisle has also been dealing with the increasing raw material and labor costs. Not only is this pushing up its direct expenses, but it is also raising its selling, administrative and R&D expenses. While current revenue growth rates are supporting the rising cost, they are largely driven by channel inventory filling. In first-quarter 2025, the company’s selling and administrative expenses and cost of sales increased 16.3% and 1.8%, respectively, year over year.Key PicksSome better-ranked stocks from the same space are discussed below.Federal Signal Corporation FSS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.FSS delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has increased 1.3%.Unifirst Corporation UNF currently carries a Zacks Rank of 2. UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst’s fiscal 2025 (ending August 2025) earnings has increased 4.1%.AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 4.3%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carlisle Companies Incorporated (CSL): Free Stock Analysis Report Unifirst Corporation (UNF): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Federal Signal Corporation (FSS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks