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Gibraltar Raises Outlook on Better Prospects & Minimal Risks

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We have issued an updated research report on the premium steel & iron firm Gibraltar Industries, Inc.ROCK on Nov 9, 2015. The company enjoys a leading position in the industry, thanks to its diversified product offering.

Bullish Factors

Gibraltar Industries reported strong results for third-quarter 2015, mainly driven by a sound value-creation strategy. Moreover, increased residential market demand, which boosted sales of centralized postal storage, supported the growth in revenues and earnings during the quarter.

Further, Gibraltar Industries attempts to improve its revenues and margins with the help of tactical growth initiatives. For instance, the company's recently acquired business RBI Solar, Inc., Rough Brothers Manufacturing Inc., and its associates (collectively known as 'RBI') are expected to enhance its aggregate revenue by $155-$160 million for full-year 2015.

Based on the current market conditions, the company also raised its outlook for full-year 2015, expecting solid returns from better product pricing, efficient cost-saving programs and greater operational efficiency. For full-year 2015, earnings guidance was increased to a range of 90-95 cents from the prior projection of 78-88 cents. Revenues for full-year 2015 are predicted within $990 million to $1 billion, up 15% from $862 million earned at the end of 2014.

Few Hints of Issues

We believe this Zacks Rank #1 (Strong Buy) stock would continue to improve its top- and bottom-line results in the quarters ahead. However, certain industry-specific negativities might hurt Gibraltar Industries' commercial prospects. For instance, severe rivalry exposes the company to risks of market share loss as well as pricing wars. Further, the firm's international operations might face adverse impact from unfavorable foreign currency movements.

Stocks to Consider

Gibraltar Industries currently sports a Zacks Rank #1 (Strong Buy). Other well-ranked stocks in the industry include Advanced Drainage Systems, Inc. WMS , Masco Corporation MAS and UCP, Inc. UCP . All three stocks carry a Zacks Rank #2 (Buy).

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MASCO (MAS): Free Stock Analysis Report

ADV DRAINAG SYS (WMS): Free Stock Analysis Report

GIBRALTAR INDUS (ROCK): Free Stock Analysis Report

UCP INC (UCP): Free Stock Analysis Report

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


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

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