Beacon Roofing Supply, Inc. BECN, a leading distributor of roofing, waterproofing and exterior products, reported progress in its fourth-quarter expansion efforts for 2024.
The company added two new branches and completed two acquisitions, enhancing its presence in Massachusetts, Missouri and Tennessee. The initiatives indicate Beacon’s focus on growing its service area and strengthening the company’s market position.
More on Beacon's Recent Growth Initiatives
Beacon continued its M&A growth strategy by acquiring Ryan Building Products in Westwood, MA and Fairway Wholesale Distribution in South Hadley, MA. Ryan Building Products, founded in 1979, specializes in seamless metal-gutter fabrication and delivery. Fairway Wholesale Distribution has supported lumberyard customers for nearly 50 years. These acquisitions add experienced and knowledgeable teams with strong service records to the company.
In addition, BECN opened new greenfield branches in Arnold, MO and Lebanon, TN to enhance service in St. Louis and Nashville markets. These branches aim to improve accessibility for contractors, offering a range of residential and non-residential building materials, including the company’s TRI-BUILT product line.
BECN’s Focus on Ambition 2025 Plan
The company focuses on above-market growth by expanding its footprint through acquisitions and new greenfield branches. This strategy aligns with its Ambition 2025 plan, which emphasizes adding locations and teams to enhance customer service. Beacon surpassed its 2023 shareholder return and revenue targets under this plan and continues to work toward achieving the company’s long-term goals.
Beacon has implemented several strategic initiatives to drive long-term growth and enhance customer experience. The company aims to expand revenues, improve margins and create value for its customers, suppliers, employees and shareholders.
Beacon made significant strides through its Ambition 2025 targets, announced on Feb. 24, 2022. Since Jan. 1, 2022, the company has expanded its geographic footprint by opening 62 greenfield branches. The company has purchased 83 branches from 24 acquisitions as of Sept. 30, 2024. These greenfield and acquired branches contributed $412.7 million and $594.9 million, respectively, to net sales in the first nine months of 2024, showcasing the success of its strategic initiatives.
BECN’s Price Performance
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Shares of this largest publicly traded distributor of residential and non-residential roofing materials have gained 15.2% in the past year compared with the Zacks Building Products – Retail industry’s growth of 7.6%. The company is benefiting from the effective implementation of its Ambition 2025 targets and cost-reduction initiatives. BECN’s emphasis on expanding through acquisitions, along with investments in digital and productivity enhancements, is expected to support its prospects.
BECN’s Zacks Rank & Other Stocks to Consider
Beacon currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Chipotle Mexican Grill, Inc. CMG presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
CMG delivered a trailing four-quarter earnings surprise of 9.8%, on average. The stock has surged 31.4% in the past year. The consensus estimate for CMG’s 2025 sales and earnings per share (EPS) indicates growth of 12.8% and 17.9%, respectively, from the year-ago period’s levels.
Brinker International, Inc. EAT presently has a Zacks Rank #2. EAT delivered a trailing four-quarter earnings surprise of 12.1%, on average. The stock has surged 241.1% in the past year.
The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 9.3% and 44.2%, respectively, from the year-ago period’s levels.
Shake Shack Inc. SHAK currently carries a Zacks Rank of 2. SHAK delivered a trailing four-quarter earnings surprise of 18.3%, on average. The stock has gained 85.2% in the past year.
The Zacks Consensus Estimate for SHAK’s 2025 sales and EPS indicates a rise of 14.7% and 42%, respectively, from the year-ago period’s levels.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, 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 >>Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
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