Many stocks have been testing new highs in 2020, and one of the most notable is Beacon Roofing Supply Inc. (BECN). Currently, BECN is trading at $29.35 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $22.08.
To add more color to this target, the company’s high over the last year is $37.92 and the low is $11.66. Over the last 52 weeks, BECN is down -22.60% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, BECN reported a profit of $342.4 million. Beacon Roofing Supply Inc. also saw revenues increase to $1.46 billion. In addition, BECN has free cash flow of -$175.89 million as of 03-2020 The company’s EBITDA came in at $23.89 million which compares well with its peers.
BECN booked profit margins of -1.60%, its Return on Equity (ROE) is -6.20%, and its Return on Assets is -1.70%. All told, it is clear that, BECN needs to be on your watchlist.
Find out when BECN reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BECN has a short ratio of 5.62 and outstanding shares of 68.82M.
BECN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.48 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.63. Beacon Roofing Supply Inc. BECN also noted assets of $7.11 billion at the end of the last quarter. Investors should also keep an eye on sector updates as BECN has historically followed its peers on positive news.
All told, Beacon Roofing Supply Inc. BECN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BECN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Beacon Roofing Supply Inc. BECN is now commanding a market cap of 1.90B and a float of 54.60M. BECN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BECN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in BECN, either long or short, and we have not been compensated for this article.