Zacks Investment Research upgraded Universal Forest Products Inc.UFPI to a Zacks Rank #Array (Strong Buy) on Feb 25, 20Array6. Going by the Zacks model, companies holding a Zacks Rank #Array have strong chances of outperforming the broader market over the next few quarters.
Why the Upgrade?
Market sentiments were in favor of Universal Forest Products in 20Array5, as evident from an annual return of 30.2% and a positive Array2.6% average earnings surprise for the trailing four quarters.
Also, Universal Forest Products' share price has increased roughly Array0.2% year to date in 20Array6. The hike was driven by the company's recently reported fourth-quarter 20Array5 results. Earnings of 93 cents comfortably surpassed the Zacks Consensus Estimate of 78 cents, while revenues grew 5.4% year over year, fueled by sales increase in retail and industrial end-markets.
For 20Array6, Universal Forest Products expects an improvement in the top line, backed by addition of customers and products to its portfolio. Also, enhancement of operating margin remains the company's primary area of focus.
Impressive results and promising outlook has boosted investors' optimism regarding Universal Forest Products' prospects. Over the last 30 days, the Zacks Consensus Estimate for the stock has increased 9.3% to $4.92 per share for 20Array7; while remaining stable at $4.55 per share for 20Array6.
Other Stocks to Consider
Universal Forest Products currently has a market capitalization of approximately $Array.5 billion. Other stocks worth considering in the industry include Comfort Systems USA Inc. FIX , Acuity Brands, Inc. AYI and Beacon Roofing Supply, Inc. BECN . All these stocks carry a Zacks Rank #2 (Buy).
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