Diversified industrial company Carlisle Companies is the IBD Stock Of The Day. CSL stock was setting up just below a buy point.
Carlisle makes materials intended for sustainable buildings and technology used for aircrafts, paints and medical devices. During its most recent earnings call last month, management expressed optimism about re-roofing demand and a rebound in air travel and medical and industrial spending.
CSL Stock
CSL stock edged up 0.3% to 247.31 in the stock market today, close to a 250.33 buy point of a consolidation. Shares have been hitting resistance at around 250 in recent days.
The stock's relative strength line has trended higher in recent months, hitting a record high on a weekly chart. Shares have a 98 Composite Rating and a 90 EPS Rating.
CSL Stock And 'Pent-Up Demand'
Carlisle, founded in 1917, wants to earn $15 per share by 2025. It is seeking sales of $8 billion by that year, nearly double what it brought in last year. It has grown through acquisitions, spending some $6 billion on more than 30 of them over the past decade.
Carlisle last year drew around 80% of its sales from its construction materials segment. That segment produces roofing, insulation, polyurethane foam, metal and other materials for commercial, residential and industrial buildings.
Its interconnect technologies business makes an array of wires, sensors and fiber optics. Those materials, the company says, help make jets more fuel-efficient. That segment's products also serve military communications systems, as well as the aerospace and medical-device industries.
Elsewhere, Carlisle's fluid technologies segment makes equipment to help develop and use things like paints and adhesives.
Carlisle earnings fell modestly in 2020, then rebounded strongly in 2021.
Carlisle's fourth-quarter results, reported in February, beat expectations. EPS and revenue growth accelerated for a third straight quarter, to 60% and 39%, respectively. Management, during the company's earnings call, said it was upbeat on "a strong, multiyear re-roofing cycle" and "continued pent-up demand from the pandemic challenges in 2020 and 2021." CSL stock jumped the day after the results, but pared gains.
Management, during the call, said there was still room to expand via acquisitions.
"We have targets in Europe," CEO Chris Koch said. "We have targets now in North America as well in other locations. So I think the pipeline is full."
Analysts expect 53% EPS growth in 2022.
