10 Best Plastics and Rubber Stocks to Buy According to Analysts

5. Carlisle Companies Incorporated (NYSE:CSL) 

Upside Potential as of January 13: 27.02%

Carlisle Companies Incorporated (NYSE:CSL) is a major participant in the manufacturing of plastic products, primarily in the building materials industry. The company’s focus is on developing construction solutions and products for energy-efficient structures.

The third quarter saw record earnings for Carlisle Companies Incorporated (NYSE:CSL), with adjusted EPS increasing 24% to $5.78 and adjusted EBITDA margin growing 60 basis points year over year to 27.6%. Revenue increased by 6% year over year overall. The CCM division generated $998 million in revenue, a 9% increase YoY, and had a remarkable adjusted EBITDA margin of 32.8%. The firm paid out $466 million to shareholders in Q3 through the repurchase of 1.1 million shares, increasing buybacks to $1.2 billion. The company also paid out $46 million in dividends, which included an 18% increase announced in August.

MTL and PlastiFab are two strategic acquisitions that complement its building envelope portfolio and are in line with Vision 2030. Having $1.5 billion in cash and a 0.5x net leverage ratio, the company is nevertheless financially sound.

Baird maintained its Outperform rating on Carlisle Companies Incorporated (NYSE:CSL) shares and increased the price objective from $500 to $506. The company stated that although they are tactically more cautious in the short term because timing-related price-cost could put pressure on margins over the next few quarters, and the story also shifts toward capital deployment, they still plan to purchase the shares in the long run due to their pure-play transition, capital allocation opportunities, and long-term EPS power.

There are 5 analysts who have collectively rated the stock as a “Strong Buy.” The average price objective indicates a possible gain of 27.02% from the current stock price of $389.40.

Brandon Haley’s Holocene Advisors was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns 176,974 shares worth $79.59 million as of Q3.