Armstrong World Industries, Inc
) hit a new 52-week high of $61.29 and then closed at $61.08 on
Jan 10. With this, the Lancaster, Pa - based global leader in
designing and manufacturing of floors and ceilings systems
surpassed its previous 52-week high of $59.34 reached on Jan 3.
The company has long-term estimated earnings per share growth
rate of 15.89%.
ARMSTRONG WORLD (AWI): Free Stock Analysis
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Over the 52 weeks, Armstrong World's share price has ranged from
a 52-week low of $44.93 on Jun 24, 2013 to the new 52 week high
of $61.08 on Jan 10. The company has delivered a one-year return
of about 11%. Average volume of shares traded over the last three
months is approximately 756K.
What's Driving Armstrong World Upward?
Armstrong World Industries announced management changes on Nov 5.
Following the retirement of Frank Ready, Thomas Mangas has been
appointed as its chief executive officer. Mangas had previously
served as chief financial officer of Armstrong since Feb 2010,
leading Finance as well as Information Technology, Global
Business Services and Process Improvement. David Schulz succeeds
Mr. Mangas. Armstrong World's shares have benefited on
expectations that Tom Mangas, being a seasoned leader given his
global mindset and customer focus, will boost Armstrong's
On Nov 7, Armstrong World Industries announced that two of its
major shareholders, The Armstrong World Industries, Asbestos
Personal Injury Settlement Trust and Armor TPG Holdings have
floated a combined 6 million shares of the company's stock in an
underwritten secondary public issue. The initial price to the
public was set at $51.00 per share. As the effect of this
offering of shares owned by asbestos-claims beneficiaries
subsided, Armstrong World's share prices got a boost.
Armstrong World expects sales in the range of $2.70 - $2.74
billion in 2013. The company expects its adjusted EPS to lie
between $2.15 and $2.45.
Armstrong World successfully executed a $260 million share
repurchase program during the third quarter. This will boost EPS
and create value for its shareholders. Furthermore, increasing
new factory utilization will boost earnings in 2014. Also, the
company is expected to fully benefit in 2015 and 2016 from its
Other Stocks to Consider
Armstrong World currently retains a Zacks Rank #4 (Sell). Some
better performing stocks worth considering in the sector include
ames Hardie Industries plc
United Rentals, Inc.
). While James Hardie holds a Zacks Rank #1 (Strong Buy), Masco
and United Rentals carry a Zacks Rank #2 (Buy).