Shares in Installed Building Products, Inc. are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 59.34 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 118.71.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● With a 2020 P/E ratio at 32.45 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
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Installed Building Products, Inc. is a residential insulation installer and a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company has three segments. Installation segment is engaged in the installation of various products in the residential new construction, repair and remodel and commercial construction end markets from its national network of branch locations. Distribution segment sells insulation, gutters and accessories primarily to installers of these products who operate in multiple end markets. Manufacturing segment consists of its cellulose insulation manufacturing operations. It offers a portfolio of services from a national network of 250 branch locations serving all 48 continental states and the District of Columbia.