Here are the Top Reasons Why Investors Should Hold Carlisle Stock (CSL) Now
Carlisle Companies Incorporated CSL benefits from its global presence, focus on product launch and ability to penetrate other markets through acquisitions, despite persistent raw material price inflation and supply chain constraints.
CSL’s Carlisle Construction Materials (CCM) segment is gaining from solid momentum in the U.S. reroofing end-market and new construction activity. The segment is seeing strong demand for energy-efficient products and a high backlog. The Carlisle Weatherproofing Technologies segment (CWT), is being driven by the Henry acquisition.
Robust demand in the medical technologies and commercial aerospace business is supporting CSL’s Carlisle Interconnect Technologies (CIT) segment. CFT’s Carlisle Fluid Technologies (CFT), segment will be able to benefit from its focus upon product introductions, price discipline, and growing backlog.
The company purchased MBTechnology on February 20, 2022. This acquisition strengthened the company’s product-building platform as well as boosted its energy-efficient solutions offerings. Also, the Henry Company acquisition in September 2021 boosted Carlisle’s product offerings for construction activities. Noteworthy is the fact that third-quarter 2022 revenues were up 9.2% thanks to acquisitions.
Carlisle plans to grow above the market organically, acquire new assets, and leverage its Carlisle Operating System to improve business processes. In addition to returning cash to its shareholders, it also intends to implement Vision 2025. Price realization, higher volumes and contribution from the COS increased the company’s operating margin by 820 basis points in third-quarter 2022.
Carlisle uses its cash flow to pay dividends and repurchase shares. Carlisle paid out $95.6 million in dividends and repurchased shares totaling $201.1 million over the first nine month of 2022. In August 2022, the quarterly dividend rate of Carlisle was increased by 39%.
We believe investors should hold the Carlisle stock based on the positives mentioned above. This is reflected in its current Zacks rank #3 (Hold). In the past year, the stock has rallied 1.6% against the industry’s 16.2% decline.
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