The U.S. construction market is exhibiting an upbeat picture, of late. The space has gained immensely from rise in the GDP numbers, favorable job market scenario, and sturdy business and consumer confidence. Per the U.S. Chamber of Commerce’s Commercial Construction Index, 93% of the total contracts in the country would witness a surge in profit margins by 2019.
Against this backdrop, investors can make the most of this opportunity by betting on top-ranked U.S. construction stocks for booking alluring returns.
Among the numerous potential gainers in the Zacks Construction sector, including Gibraltar Industries, Inc. ROCKto your portfolio will prove a masterstroke investment move. This Zacks Rank #2 (Buy) stock has rallied 15.6% in the last three months, primarily on the back of its unique business strategy and solid revenue prospects.
Why Should You Grab the Stock?
Unique Strategy:Gibraltar Industries has been boosting its competency on the back of the company’s four-pillar value creation strategy. In sync with this program, the company is making well-planned acquisitions, improving operational excellence, advancing technological know-how and undertaking calculated portfolio management moves.
The company is currently improving its operational efficacy by lowering complexity, simplifying product offerings through 80/20 initiatives and adjusting costs.
Under the portfolio management pillar, the company is allocating resources and leadership time to high margin businesses.
Per the acquisition pillar, the company’s current target markets for buyouts are residential building products, post & parcel solutions, renewable energy and conservation, perimeter security and infrastructure.
Also, the innovation pillar is focused on patenting the products that are developed through acquired product lines or internally within business.
Three years post the implementation of this transformational strategy, Gibraltar Industries has boosted its return on invested capital from 3.9% to 12.6%.
Over the past year, shares of the company have rallied 18.9%, outperforming the sectoral gain of 7.1%.