Armstrong World (AWI) Enters Strategic Pact, Invests in Overcast

Armstrong World Industries, Inc. AWI has solidified a strategic partnership with McKinstry, investing in Overcast Innovations. This venture promises revolutionary integrated building solutions, reducing waste and inefficiencies. By integrating Armstrong's portfolio, this move aims to supercharge Overcast’s growth trajectory, addressing critical industry challenges while fostering sustainability and innovation.

Overcast's modular ceiling systems tackle pressing challenges faced by construction stakeholders, offering solutions to skilled labor shortages, energy efficiency, and complex installations. Their factory-made architectural solutions seamlessly incorporate various components, from HVAC and lighting to sensors and detectors, simplifying the installation process.

Armstrong's collaboration with McKinstry through Overcast signifies a crucial stride in catering to the commercial construction industry's demands for sustainable, technologically advanced solutions. This strategic move merges Armstrong's industry-leading ceiling systems with Overcast’s pioneering modular designs, emphasizing crucial aspects like air quality, lighting, acoustics, and thermal comfort, while optimizing energy and construction efficiency.

The investment reflects Armstrong's commitment, initially acquiring a 20% stake in Overcast with potential future increments. Both Armstrong and McKinstry have inked strategic partnership agreements, enhancing supply chains, marketing, communications, and sales efforts for Overcast’s integrated building solutions.

This collaboration underscores the power of industry cooperation in advancing sustainable solutions for the environment. By leveraging each other's strengths, Armstrong and Overcast aim to redefine building solutions, fostering healthier, more efficient, and sustainable structures.

Share Price Performance

This Zacks Rank #1 (Strong Buy) company’s shares rallied 35.1% in the past six months, outperforming the Zacks Building Products - Miscellaneous industry’s 18.1% growth, the Zacks Construction sector’s 12.8% increase and S&P 500 Index’s 6.9% rise.
 

Zacks Investment Research
Image Source: Zacks Investment Research

During the third quarter of 2023, the company’s earnings per share (EPS) topped the Zacks Consensus Estimate by 23.1% and grew 17.6% on a year-over-year basis. Also, the company delivered a trailing four-quarter earnings surprise of 7.9%, on average.

For 2024, EPS estimates showcase growth of 6.8% from the previous year. Earnings estimate for 2024 has moved up to $5.48 per share from $5.45 in the past 60 days. Despite the macroeconomic uncertainties, the stock portrays a positive trend, indicating robust fundamentals and elevating the expectation of outperformance in the near term on the back of favorable AUV performance, lower input costs and growing demand patterns.

Other Key Picks

Here are some other top-ranked stocks from the same sector.

Martin Marietta Materials, Inc. MLM currently sports a Zacks Rank of 1. MLM delivered a trailing four-quarter earnings surprise of 37.3%, on average. The stock has gained 11.8% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MLM’s 2024 sales and EPS indicates growth of 9.7% and 14%, respectively, from a year ago.

Taylor Morrison Home Corporation TMHC currently carries a Zacks Rank #2 (Buy).  TMHC delivered a trailing four-quarter earnings surprise of 17.5%, on average. The stock has gained 7.5% in the past six months.

The Zacks Consensus Estimate for TMHC’s 2024 sales indicates growth of 0.8%, while EPS indicates a decline of 6.6%, respectively, from a year ago.

Gibraltar Industries, Inc. ROCK currently carries a Zacks Rank #2.  ROCK delivered a trailing four-quarter earnings surprise of 14.8%, on average. The stock has gained 29.8% in the past six months.

The Zacks Consensus Estimate for ROCK’s 2024 sales indicates growth of 4.6% and EPS indicates growth of 12.1%, respectively, from a year ago.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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

Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report

Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report

Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report

Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.