SiteOne Faces Growth Challenges Amid Market Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 08 2026
0mins
Source: NASDAQ.COM
SiteOne Landscape Supply Inc (SITE) has seen its stock price decline by 3.01%, hitting a 52-week low.
The company has reported no organic revenue growth over the past two years, with flat earnings per share that underperform sector averages, raising concerns about its reliance on acquisitions for future expansion. This has contributed to an uncertain investment outlook for SiteOne, despite the broader market strength reflected in the Nasdaq-100 and S&P 500 gains.
Investors are cautious as SiteOne's stock struggles, indicating potential challenges ahead in a competitive landscape.
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Analyst Views on SITE
Wall Street analysts forecast SITE stock price to rise
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 111.720
Low
134.00
Averages
141.50
High
151.00
Current: 111.720
Low
134.00
Averages
141.50
High
151.00
About SITE
SiteOne Landscape Supply, Inc. is a full product line wholesale distributor of landscape supplies in the United States and has a presence in Canada. Its customers are primarily residential and commercial landscape professionals who specialize in the design, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces. It has over 670 branch locations in 45 United States and five Canadian provinces. Through its North American network, it offers a comprehensive selection of approximately 180,000 stock keeping units (SKUs) including hardscapes (such as pavers, natural stone, and blocks), irrigation supplies, fertilizer and control products (herbicides), landscape accessories, nursery goods, outdoor lighting, and ice melt products. The Company also owns Reinders, distributor of irrigation, agronomics, holiday and landscape lighting, and landscape supplies with 12 locations across Wisconsin, Michigan, Illinois, Indiana, Kansas and Minnesota.
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.
Investing in Small-Cap Stocks: Risks and Opportunities
- Builders FirstSource Performance Decline: Builders FirstSource (BLDR), with a market cap of $7.98 billion, has seen a 6.9% revenue decline over the past two years, while its earnings per share have dropped by 37.2% annually, indicating increased competition is eroding profitability; currently trading at $74.13, it has a forward P/E of 15.6x, raising investment risks.
- SiteOne Growth Challenges: SiteOne (SITE), valued at $5.02 billion, has shown no organic revenue growth in the past two years, with flat earnings per share underperforming sector averages; its stock price of $113.37 reflects a forward P/E of 25.5x, suggesting reliance on acquisitions for future expansion, making its investment outlook uncertain.
- Provident Financial Weakness: Provident Financial Services (PFS), with a market cap of $2.87 billion, has a net interest margin of only 3.4%, one of the lowest in the banking sector, and its 5.2% annual earnings per share growth over the past five years has lagged behind revenue gains; trading at $22.05, it has a forward P/B of 1x, warranting caution for investors.
- Risks in Small-Cap Investments: While the small-cap market presents opportunities, the lack of reliable analyst price targets creates a high-risk, high-reward environment, prompting investors to consider stocks with better potential to mitigate risks.
See More
Latest Wall Street Rating Updates
- Apple Rating Reaffirmed: Bernstein raised Apple's price target from $340 to $350, anticipating a 17% revenue growth in FQ2 and a guidance of 14-17% for FQ3, with gross margins at 49.3%, indicating strong market performance and future growth potential.
- KE Holdings Upgrade: Goldman Sachs upgraded KE Holdings from neutral to buy, believing the recent stock price pullback provides an attractive re-entry point for investors, reflecting confidence in the Chinese real estate market.
- Palantir and AMD Downgrade: HSBC downgraded Palantir from buy to hold due to increasing competition; it also downgraded AMD, citing significant stock price appreciation and limited future earnings upside.
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Wall Street's Latest Rating Upgrades Summary
- Equinix Upgrade: Raymond James upgraded Equinix from Market Perform to Strong Buy, citing a robust recovery driven by AI-based demand after last year's adjustments, indicating a strong market rebound potential for the company.
- SiteOne's Positive Outlook: Deutsche Bank upgraded SiteOne from Hold to Buy, anticipating a guidance beat with a price target of $160, implying a 32% upside, reflecting market recognition of its attractive low valuation.
- Mistras Initiation: Roth Capital initiated coverage on Mistras with a Buy rating and a $22 target, highlighting significant improvements in operational efficiency that have driven margin expansion and free cash flow conversion, showcasing strong growth potential.
- Nutrien Upgrade: Bank of America upgraded Nutrien from Neutral to Buy, viewing the agricultural market's outlook as increasingly bullish, positioning Nutrien as a best-in-class operator with sustained growth capabilities.
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SiteOne Landscape Supply Reports Q1 2026 Earnings Insights
- Performance Growth: SiteOne reported Q1 2026 net sales of $940 million, slightly up from last year despite challenges from adverse weather and market softness, with a 14% adjusted EBITDA growth indicating effective management in cost control and gross margin expansion.
- Acquisition Impact: The acquisition of Reinders, a leading player in the Midwest, enhances SiteOne's capabilities in irrigation and agronomics, expected to support future growth, although management cautioned that macroeconomic uncertainty may impact overall market demand.
- Market Outlook: Management anticipates low single-digit growth in organic daily sales for 2026, primarily driven by a 2% to 3% increase in pricing, while the new residential construction market, which comprises 20% of sales, is expected to decline, putting pressure on overall sales.
- Financial Position: The company reported a net loss of $26.6 million for Q1 and cash used in operating activities of $122 million, yet maintains liquidity of $502 million, demonstrating financial flexibility amid uncertain market conditions.
See More
SiteOne (SITE) Q1 2026 Earnings Call Transcript
See More
SiteOne Landscape to Announce Q1 Earnings on April 29
- Earnings Announcement: SiteOne Landscape is set to release its Q1 2023 earnings report on April 29 before market open, with a consensus EPS estimate of -$0.30, reflecting a 50.8% year-over-year improvement, indicating gradual recovery amidst challenges.
- Revenue Expectations: The anticipated revenue for Q1 is $982.27 million, representing a 4.6% year-over-year increase, which highlights the company's stable growth in the landscape supply market despite economic headwinds.
- Estimate Revision Dynamics: Over the past three months, EPS estimates have seen four upward and four downward revisions, while revenue estimates have experienced eight upward and two downward adjustments, indicating analyst divergence and market uncertainty regarding the company's future performance.
- Future Outlook: SiteOne expects adjusted EBITDA to range between $425 million and $455 million in 2026, suggesting confidence in driving growth through positive pricing strategies and cost management measures, which could enhance future profitability.
See More
Investing in Small-Cap Stocks: Risks and Opportunities
- Builders FirstSource Performance Decline: Builders FirstSource (BLDR), with a market cap of $7.98 billion, has seen a 6.9% revenue decline over the past two years, while its earnings per share have dropped by 37.2% annually, indicating increased competition is eroding profitability; currently trading at $74.13, it has a forward P/E of 15.6x, raising investment risks.
- SiteOne Growth Challenges: SiteOne (SITE), valued at $5.02 billion, has shown no organic revenue growth in the past two years, with flat earnings per share underperforming sector averages; its stock price of $113.37 reflects a forward P/E of 25.5x, suggesting reliance on acquisitions for future expansion, making its investment outlook uncertain.
- Provident Financial Weakness: Provident Financial Services (PFS), with a market cap of $2.87 billion, has a net interest margin of only 3.4%, one of the lowest in the banking sector, and its 5.2% annual earnings per share growth over the past five years has lagged behind revenue gains; trading at $22.05, it has a forward P/B of 1x, warranting caution for investors.
- Risks in Small-Cap Investments: While the small-cap market presents opportunities, the lack of reliable analyst price targets creates a high-risk, high-reward environment, prompting investors to consider stocks with better potential to mitigate risks.
See More
Latest Wall Street Rating Updates
- Apple Rating Reaffirmed: Bernstein raised Apple's price target from $340 to $350, anticipating a 17% revenue growth in FQ2 and a guidance of 14-17% for FQ3, with gross margins at 49.3%, indicating strong market performance and future growth potential.
- KE Holdings Upgrade: Goldman Sachs upgraded KE Holdings from neutral to buy, believing the recent stock price pullback provides an attractive re-entry point for investors, reflecting confidence in the Chinese real estate market.
- Palantir and AMD Downgrade: HSBC downgraded Palantir from buy to hold due to increasing competition; it also downgraded AMD, citing significant stock price appreciation and limited future earnings upside.
- Packaging Corp Upgraded to Buy: Deutsche Bank upgraded Packaging Corp from hold to buy, raising the price target to $256 based on strong Q1 performance and positive management outlook, indicating a pivotal moment for the company in the packaging industry.
See More
Wall Street's Latest Rating Upgrades Summary
- Equinix Upgrade: Raymond James upgraded Equinix from Market Perform to Strong Buy, citing a robust recovery driven by AI-based demand after last year's adjustments, indicating a strong market rebound potential for the company.
- SiteOne's Positive Outlook: Deutsche Bank upgraded SiteOne from Hold to Buy, anticipating a guidance beat with a price target of $160, implying a 32% upside, reflecting market recognition of its attractive low valuation.
- Mistras Initiation: Roth Capital initiated coverage on Mistras with a Buy rating and a $22 target, highlighting significant improvements in operational efficiency that have driven margin expansion and free cash flow conversion, showcasing strong growth potential.
- Nutrien Upgrade: Bank of America upgraded Nutrien from Neutral to Buy, viewing the agricultural market's outlook as increasingly bullish, positioning Nutrien as a best-in-class operator with sustained growth capabilities.
See More
SiteOne Landscape Supply Reports Q1 2026 Earnings Insights
- Performance Growth: SiteOne reported Q1 2026 net sales of $940 million, slightly up from last year despite challenges from adverse weather and market softness, with a 14% adjusted EBITDA growth indicating effective management in cost control and gross margin expansion.
- Acquisition Impact: The acquisition of Reinders, a leading player in the Midwest, enhances SiteOne's capabilities in irrigation and agronomics, expected to support future growth, although management cautioned that macroeconomic uncertainty may impact overall market demand.
- Market Outlook: Management anticipates low single-digit growth in organic daily sales for 2026, primarily driven by a 2% to 3% increase in pricing, while the new residential construction market, which comprises 20% of sales, is expected to decline, putting pressure on overall sales.
- Financial Position: The company reported a net loss of $26.6 million for Q1 and cash used in operating activities of $122 million, yet maintains liquidity of $502 million, demonstrating financial flexibility amid uncertain market conditions.
See More
SiteOne (SITE) Q1 2026 Earnings Call Transcript
See More
SiteOne Landscape to Announce Q1 Earnings on April 29
- Earnings Announcement: SiteOne Landscape is set to release its Q1 2023 earnings report on April 29 before market open, with a consensus EPS estimate of -$0.30, reflecting a 50.8% year-over-year improvement, indicating gradual recovery amidst challenges.
- Revenue Expectations: The anticipated revenue for Q1 is $982.27 million, representing a 4.6% year-over-year increase, which highlights the company's stable growth in the landscape supply market despite economic headwinds.
- Estimate Revision Dynamics: Over the past three months, EPS estimates have seen four upward and four downward revisions, while revenue estimates have experienced eight upward and two downward adjustments, indicating analyst divergence and market uncertainty regarding the company's future performance.
- Future Outlook: SiteOne expects adjusted EBITDA to range between $425 million and $455 million in 2026, suggesting confidence in driving growth through positive pricing strategies and cost management measures, which could enhance future profitability.
See More
