For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Carlisle (CSL) ten years ago? It may not have been easy to hold on to CSL for all that time, but if you did, how much would your investment be worth today?
Carlisle's Business In-Depth
With that in mind, let's take a look at Carlisle's main business drivers.
Based in the Scottsdale, AZ, Carlisle Companies Incorporated is a diversified, global portfolio of niche brands and businesses with highly engineered and high margin products. It engages in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment. The company sells its products in the United States, Europe, Asia, Canada, Mexico, Latin America, the Middle East and Africa. Carlisle has restructured its business into four segments, which are discussed below:
Carlisle Construction Materials (CCM: 58.9% of first-quarter 2022 revenues): The segment manufactures a comprehensive range of roofing products, warranted roof systems and accessories for commercial buildings. It sells its products through some market-leading brands like the Carlisle SynTec, WeatherBond Roofing, Versico Roofing, CCM Europe and Hunter Panels.
Carlisle Weatherproofing Technologies (CWT: 24%): The segment offers building envelope solutions that help in driving energy efficiency in commercial and residential applications. Products offered by the segment include waterproofing and moisture protection products, sealants/primers and flashing systems, among others. It sells its products through some market-leading brands like the Henry Company, Carlisle Coatings & Waterproofing, Carlisle WIP Products and Carlisle Polyurethane Systems.
Carlisle Interconnect Technologies (CIT: 12.4%): This segment is engaged in designing and manufacturing high-performance wire and cable, fiber optic cable, avionics trays, integrated systems as well as complex cable assemblies for applications in the aerospace industry. Also, it provides engineered products for the defense industry that include applications for radar systems, missiles and electronic warfare systems as well as test and measurement solutions. This apart, the segment offers medical interconnect products for the surgical, electrosurgical, patient monitoring and wire harness applications.
Carlisle Fluid Technologies (CFT: 4.7%): The segment is engaged in providing a comprehensive range of finishing equipment products for the automotive, refinishing, aerospace, construction, agriculture, marine and rail industries.
In August 2021, the company divested its Carlisle Brake & Friction (CBF) segment as part of its portfolio enhancement strategy.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Carlisle ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2012 would be worth $5,252.46, or a 425.25% gain, as of June 7, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 213.39% and gold's return of 11.21% over the same time frame.
Looking ahead, analysts are expecting more upside for CSL.
Carlisle’s first-quarter 2022 earnings and revenues beat the Zacks Consensus Estimate by 67.7% and 11.9%, respectively. The company is set to gain from strength in the U.S. reroofing end markets along with acquired assets. Strength in the medical technologies business and recovery in the commercial aerospace business are likely to drive its performance. Its focus on product launches and an improved outlook for industrial capital spending will be beneficial. For 2022, it expects revenues to grow more than 30% year over year. The company’s shareholder-friendly policies are likely to act as tailwinds. In the past three months, its shares have outperformed the industry. However, the company has been dealing with high costs and expenses, which might affect its margins and profitability. High debt levels can raise its financial obligations.
The stock has jumped 6.35% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022; the consensus estimate has moved up as well.Zacks Names "Single Best Pick to Double"
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Carlisle Companies Incorporated (CSL): 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.