UFP Packaging, LLC, an affiliate of UFP Industries, Inc. UFPI, has closed the acquisition of C&L Wood Products, Inc. based in in Hartselle, AL.
The acquired manufacturer of pallets and mulch is set to complement UFP Packaging’s PalletOne business, especially boosting its market reach and customer base in Alabama. Notably, C&L reported a trailing 12-month sales of $24.8 million as of November 2024.
Per the executive vice president of PalletOne, Justin Elwell, “The addition of C&L expands PalletOne’s geographic footprint, giving us new access to high-volume pallet production in northern Alabama.”
After the buyout announcement, UFPI stock inched up 0.6% during Monday’s trading session.
Diversified Product Portfolio Benefits UFP Industries
UFPI engages in organic and inorganic strategies to boost its product offerings and enhance business growth. One preferred mode of solidifying its product portfolio and leveraging new business opportunities is accretive acquisitions. The company’s five-year financial goals include small tuck-in acquisitions contributing to the goal of reaching annual unit sales growth of 7-10%.
Coming to organic initiatives, UFPI actively introduces new products and ensures production efficiencies. The company defines new products as those that will generate sales of at least $1 million per year within four years of launch and are still growing and gaining market penetration. During the first nine months of 2024, new product sales (as a percent of total sales) were 7.5% at $388.4 million, implying that the company is on track to fulfill the 2024 outlook of achieving new product sales of $510 million. The company aims to reach new product sales (as a percent of total sales) of 10% in the long term.
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Shares of this holding company have gained 3% in the past six months compared with the Zacks Building Products - Wood industry’s 10.6% growth. The company’s prospects are hindered by broad-based pricing pressures, aligning its overhead with lower demand levels and eliminating unnecessary costs. Nonetheless, its focus on long-term business plans, new product innovation, accretive acquisition strategies are likely to back its growth in the upcoming quarters.
UFPI's Zacks Rank & Key Picks
UFP Industries currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks investors may consider from the Zacks Construction sector.
Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have soared 126.2% in the past year. The Zacks Consensus Estimate for STRL’s 2025 sales and earnings per share (EPS) implies an increase of 7.3% and 8.1%, respectively, from the prior-year levels.
Weyerhaeuser Company WY currently sports a Zacks Rank of 1. WY delivered a trailing four-quarter earnings surprise of 41.6%, on average. The stock has lost 16.3% in the past year.
The consensus estimate for WY’s 2025 sales and EPS indicates an increase of 8% and 71.3%, respectively, from a year ago.
MasTec, Inc. MTZ presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has surged 106.2% in the past year.
The Zacks Consensus Estimate for MTZ’s 2025 sales and EPS indicates an increase of 8.8% and 43.4%, respectively, from a year ago.
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.
UFP Industries, Inc. (UFPI) : Free Stock Analysis Report
Weyerhaeuser Company (WY) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
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