8 Most Profitable Industrial Stocks to Invest In

5) TopBuild Corp. (NYSE:BLD)

Net Income on TTM Basis: $617.1 million

5-Year Net Income CAGR: 29.22%

Number of Hedge Fund Holders: 42

TopBuild Corp. (NYSE:BLD) is engaged in the installation and distribution of insulation and other building material products.

The company saw a strong performance in Q2 2024, with growth in sales and profits throughout its segments. TopBuild Corp. (NYSE:BLD) announced a 3.7% rise in sales to $1.37 billion. This was attributed to pricing strategies, higher volumes, and recent acquisitions. The company’s backlog remains strong, with expectations to extend into 2025.  The company announced a new $1 billion share repurchase program and made $280 million in acquisitions over the previous 18 months.

TopBuild Corp. (NYSE:BLD) expects fiberglass supply to improve in H2 2024 and is confident about covering price increases. The company highlighted that, in Q2 2024, productivity initiatives and management of underperforming branches aided its profitability. Furthermore, it expects that a strong bidding activity will continue, despite project delays in commercial segments. TopBuild Corp. (NYSE:BLD) wrapped up 6 acquisitions in 2024, adding more than $100 million in annual revenue.

The company recently acquired Texas Insulation, which expands TopBuild Corp. (NYSE:BLD)’s spray foam capabilities in an important and growing geography. This acquisition further demonstrates its opportunities around making acquisitions in the core area of insulation. TopBuild Corp. (NYSE:BLD)’s long-term fundamentals remain strong, aided by the undersupply of housing in the US, increasing household formations, the potential for moderating interest rates, and healthy demand for greater energy efficiency.

Analysts at Jefferies Financial Group increased their price target on the shares of TopBuild Corp. (NYSE:BLD) from $486.00 to $536.00, giving a “Buy” rating on 17^th July.