AZEK Company Co., Ltd. AZEK has entered into a definitive agreement with Plaskolite, LLC to sell its commercial division's Vycom business. The agreement is expected to close on November 1, 2023 and demonstrates AZEK's commitment to a streamlined business vision.
This agreement will simplify AZEK's portfolio and allow it to focus more on high-growth areas such as residential repair and renovation, R&R, and outdoor living. The move will allow AZEK to focus on key divisions such as decks, rails and accessories, and exteriors. The company's strong financial position provides flexibility for this strategic move.
Plaskolite, an Ohio-based global leader in engineered thermoplastics, will oversee Vycom and further strengthen its portfolio. This acquisition will enable Plaskolite to better serve its customers by offering a wide range of thermoplastic solutions.
stock price performance
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The company's stock has increased 67.4% over the past year, compared to a 60.9% increase in the Zacks Building Products – Air Conditioning and Heating industry. The company has benefited from growth and productivity initiatives, operational performance and double-digit home sales performance.
Despite uncertainty in the R&R market, the company's Deck, Rail & Accessories and Exterior categories recorded significant sell-through growth in the third quarter of fiscal 2023. This growth is being driven by timber conversion and new business acquisition. The company remains optimistic about its resilient business model and is expected to outgrow the portfolio's underlying R&R market through material transformation and various growth initiatives.
Zacks Rank and other important picks
AZEK currently carries a Zacks Rank #1 (Strong Buy).
Other top stocks in the Zacks Construction sector include:
Construction Partners Co., Ltd. ROAD sports a Zacks Rank #1.You can see See the complete list of today's Zacks #1 Rank stocks here. ROAD's Q4 earnings surprise averaged 10.6%. ROAD stock has increased 44% over the past year.
The Zacks Consensus Estimates for ROAD's 2023 revenue and earnings per share (EPS) are pointing to increases of 19.3% and 112.2%, respectively, from the year-ago levels.
Top Build Co., Ltd. BLD has a Zacks Rank of #2 (Buy). The company's fourth quarter results were an average surprise of 14.1%. BLD stock has increased 50.1% over the past year.
BLD's 2023 Zacks Consensus Estimates for revenue and EPS are pointing to increases of 3.3% and 8.4%, respectively, from year-ago levels.
EMCOR Group Co., Ltd. EME carries a Zacks Rank #1. The company's fourth-quarter results were an average surprise of 17.2%. EME stock has increased 69.8% over the past year.
EME's 2023 Zacks Consensus Estimates for revenue and EPS suggest growth of 11.3% and 35.4%, respectively, from year-ago levels.
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