What Happened?
Shares of building envelope solutions provider Carlisle Companies (NYSE: CSL) jumped 4% in the afternoon session after the broader market rallied as a key inflation report came in largely as expected, increasing the odds of a Federal Reserve interest rate cut. The U.S. stock market climbed sharply after the July headline Consumer Price Index (CPI), a key measure of inflation, came in at +2.7% year-over-year, largely in line with expectations. This news increased the chances for a Federal Reserve rate cut at its September meeting to 95%, fueling gains across major indexes like the Dow Jones, S&P 500, and Nasdaq.
The shares closed the day at $384.49, up 4.9% from previous close.
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What Is The Market Telling Us
Carlisle’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock dropped 8.4% on the news that the company reported disappointing third-quarter earnings results. Its revenue unfortunately missed, and its organic revenue fell short of Wall Street's estimates. Management called out the continued decline in residential markets and weather-related and port strikes as debilitating factors that slowed down momentum during the quarter. Overall, this was a weaker quarter. CSL wasn't the only housing-related company to report underwhelming results. MHK, which is also exposed to residential construction and demand for homes, also put up weak results that sent the stock down.
Carlisle is up 4.9% since the beginning of the year, but at $384.39 per share, it is still trading 20.1% below its 52-week high of $480.93 from October 2024. Investors who bought $1,000 worth of Carlisle’s shares 5 years ago would now be looking at an investment worth $3,022.
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