Installed Building (IBP) Expands With Anchor Insulation Buyout
Installed Building Products, Inc. IBP completes the acquisition of Anchor Insulation Co., Inc. — a Pawtucket, RI-based company that installs residential, mechanical and industrial insulation.
Jeff Edwards, chairman and chief executive officer of IBP, stated, "With approximately $39 million of annual revenue, Anchor Insulation expands our presence to residential, commercial and industrial customers across the Northeastern United States."
Shares of this Zacks Rank #3 (Hold) firm have gained 0.14% on Mar 13 and 18.1% in the past three months compared with the Zacks Building Products – Miscellaneous industry’s 9.2% growth. Although IBP has been facing the heat of inflationary pressure and supply chain issues like other industry players, the solid acquisition strategy is certainly poised to add benefits.
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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisitions have been a preferred mode of expansion for IBP for years. The company’s persistent focus on prioritizing profitable growth through the acquisition of well-run installers of insulation and complementary building products bodes well. It has a robust pipeline of opportunities across multiple geographies, products and end markets.
In 2023, as of now, IBP has acquired businesses that have generated approximately $43 million in annual revenues. Acquisitions remain a key component of Installed Building’s growth strategy. It expects a robust pipeline of opportunities across multiple geographies, products and end markets.
For 2023, earnings estimate for the company has moved upward to $8.44 per share from $7.45 over the past 30 days. This positive trend signifies bullish analysts’ sentiments, indicating robust fundamentals and the expectation of outperformance in the near term.
Some Better-Ranked Stocks
A few better-ranked stocks in the Zacks Construction sector are:
Simpson Manufacturing Co., Inc. SSD: The company designs, engineers and manufactures high-quality wood and concrete building construction products designed to make structures safer and more secure that perform at high levels. It has been benefiting from product price increases and key growth initiatives.
Simpson’s earnings for 2023 are expected to decrease by 16.8%. It currently sports a Zacks Rank #1.
United Rentals, Inc. URI currently carries a Zacks Rank #2 (Buy). The long-term earnings growth rate of the company is 16.3%.
The Zacks Consensus Estimate for URI’s 2023 sales and EPS indicates growth of 20.3% and 28.3%, respectively, from the previous year’s reported levels.
Sterling Infrastructure, Inc. STRL currently carries a Zacks Rank #2. STRL has a trailing four-quarter earnings surprise of 19.3%, on average.
The Zacks Consensus Estimate for STRL’s 2023 sales indicates a 0.8% decline, while that for EPS suggests 10.8% growth.
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