How The Pieces Add Up: RWJ Headed For $51
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 14 2025
0mins
Should l Buy CSW?
Source: NASDAQ.COM
ETF Analysis: The Invesco S&P SmallCap 600 Revenue ETF (RWJ) has an implied analyst target price of $51.39 per unit, indicating a potential upside of 9.66% from its current trading price of $46.86.
Stock Performance Insights: Notable underlying holdings such as CSW Industrials, M/I Homes, and Calix show significant upside potential based on analyst target prices, raising questions about the validity of these targets amidst market conditions.
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Analyst Views on CSW
Wall Street analysts forecast CSW stock price to fall
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 322.010
Low
271.00
Averages
311.20
High
350.00
Current: 322.010
Low
271.00
Averages
311.20
High
350.00
About CSW
CSW Industrials, Inc. is a diversified industrial growth company. The Company operates in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. The Contractor Solutions segment manufactures efficiency and performance-enhancing products predominantly for residential and commercial heating, ventilation, air conditioning and refrigeration (HVAC/R) and plumbing applications, which are designed primarily for the professional trades. The Specialized Reliability Solutions segment manufactures and supplies specialized consumables that impart or enhance properties such as lubricity, anti-seize qualities, friction, sealing and heat control. The Engineered Building Solutions segment provides primarily code-driven, life-safety products that are engineered to provide solutions for the construction, refurbishment and modernization of commercial, institutional and multifamily residential buildings.
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.
- Earnings Growth: Corby Spirit's adjusted net earnings for Q2 reached C$9.1 million, reflecting an 8.4% year-over-year increase, indicating robust performance and enhanced profitability in the market.
- Revenue Performance: The company reported Q2 revenues of C$66.9 million, also up 8.4% from the previous year, showcasing sustained demand for its products and an expanding market share.
- Financial Health: With both revenue and net earnings on the rise, Corby Spirit's financial position is further solidified, providing a strong foundation for future investments and expansion.
- Optimistic Market Outlook: The company expressed confidence in future growth, anticipating continued benefits from consumer preferences for high-quality spirits, which will further drive sales growth.
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- Dividend Increase: Corby Spirit and Wine Limited declared a quarterly dividend of CAD 0.24 per share, representing a 4.3% increase from the previous CAD 0.23, indicating the company's stable profitability and cash flow.
- Payment Schedule: The dividend is payable on March 11, with a record date of February 25 and an ex-dividend date also on February 25, ensuring shareholders receive their returns promptly.
- Investor Confidence: The increase in dividends not only reflects the company's confidence in future earnings but may also attract more investor interest, potentially enhancing the stock's market performance.
- Financial Health Indicator: This dividend adjustment signifies that Corby Spirit maintains good financial health in the current economic environment, strengthening its position in the competitive beverage market.
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- Strong Performance: CSW Industrials achieved record revenue of $233 million in Q3 2026, a 20% increase year-over-year, primarily driven by acquisitions despite facing overall market challenges.
- Acquisition Strategy: The company completed three acquisitions in the quarter, including the $650 million purchase of MARS Parts, marking its largest acquisition to date and demonstrating its proactive positioning in industry consolidation.
- Shareholder Returns: CSW repurchased $70 million in stock during the quarter, emphasizing its commitment to enhancing shareholder returns, while maintaining a net debt-to-EBITDA ratio of 2.3x, indicating prudent financial leverage management.
- Future Outlook: Despite destocking pressures in the residential HVAC/R market, management maintains a cautiously optimistic view on future order patterns, expecting to achieve a 30% EBITDA margin within 12 months, reflecting confidence in acquisition integration.
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- Earnings Miss: CSW Industrials reported a Q3 Non-GAAP EPS of $1.42, missing expectations by $0.45, indicating a significant decline in profitability.
- Revenue Decline: The company generated $233 million in revenue for the quarter, a 15.9% year-over-year decrease, falling short by $18.22 million, reflecting weak market demand negatively impacting performance.
- Record Adjusted EBITDA: Despite the revenue drop, adjusted EBITDA reached $44.8 million, up 6.6% year-over-year, setting a fiscal third-quarter record, showcasing improvements in cost control and operational efficiency.
- Stable Debt Levels: At the end of the quarter, net debt stood at $764.2 million, resulting in a net leverage ratio of 2.3x, within the target range of 1-3x as per credit facility agreements, indicating sound financial management.
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- Profit Decline: CSW Industrials reported a third-quarter profit of $10.26 million, or $0.62 per share, which is a significant drop from last year's $26.95 million and $1.60 per share, indicating a weakening in the company's profitability.
- Adjusted Earnings: Excluding items, CSW's adjusted earnings were $23.65 million, or $1.42 per share, showing a decline from last year but reflecting the company's efforts in cost control.
- Revenue Growth: The company achieved a 20.3% year-over-year revenue increase to $232.99 million, up from $193.64 million last year, indicating strong market demand and effective sales strategies.
- Market Reaction: Despite revenue growth, the significant profit decline may raise investor concerns about the company's future profitability, potentially impacting its stock performance and market confidence.
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