RPM International Reports Q2 Sales Miss, Stock Rises on Acquisition News
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2025
0mins
Should l Buy RPM?
Source: Yahoo Finance
RPM International Inc. saw a price increase of 3.61%, reaching a 20-day high amid positive market conditions, with the Nasdaq-100 up 0.60% and the S&P 500 up 0.39%.
The stock's rise is attributed to RPM's strategic acquisition of Kalzip GmbH, a German company specializing in building envelope technologies, which is expected to enhance RPM's competitive edge and drive future sales growth. This acquisition aligns with RPM's strategy to solidify its leadership in high-growth construction markets, despite recent disappointing sales performance and declining profitability in their Q2 report.
The implications of this acquisition could be significant for RPM, as it not only expands their product offerings but also positions them to better meet the growing demand for high-performance building materials. Investors may view this move as a positive step towards long-term growth, even as the company navigates current market challenges.
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Analyst Views on RPM
Wall Street analysts forecast RPM stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 117.600
Low
115.00
Averages
125.92
High
149.00
Current: 117.600
Low
115.00
Averages
125.92
High
149.00
About RPM
RPM International Inc. owns subsidiaries that specialize in coatings, sealants, building materials and related services. Its segments include Construction Products Group (CPG), Performance Coatings Group (PCG), and Consumer. The CPG segment products and services are sold throughout North America and also account for a significant portion of its international sales. Its products and services within this segment include construction sealants and adhesives, coatings and chemicals, roofing installation, HVAC and roofing restoration, concrete admixture and repair products, and others. The PCG segment offers products and services including high-performance flooring solutions, corrosion control and fireproofing coatings, infrastructure repair systems and fiberglass reinforced plastic structures. The Consumer segment manufactures and markets professional use and do-it-yourself products for a variety of mainly residential applications, including home improvement and personal leisure activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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