Monday's IBD 50 Stocks To Watch pick is PGT Innovations, a Florida-based residential building products manufacturer that ranks among top stocks to buy and watch in today's bear market.
The manufacturer shows rapid growth in the construction of premium windows and doors for residential buildings.
The stock gained over 8% last week in strong volume after bottoming in its current consolidation. Shares are now attempting to regain the 10-week moving average as the stock lunges toward a 23.46 buy point.
Investors should hold off until the stock hits that level. Even then, a bear market makes any purchase exceedingly risky.
The summer rally topped out at 23.36 in August, ahead of a pullback along side the market. Add 10 cents to that high to locate the proper buy point. Before that, shares had been forming a long cup base since early 2021.
PGTI stock is continuing to act well on Monday, up 2.5%. Additionally, the relative strength line, which compares a stock's performance vs. the overall market, is hitting a new high according to MarketSmith.
Shares gained over 14% after the most recent earnings report on July 26.
The 67 cents-per-share Q2 profit beat analyst's expectations of 45 cents. Both earnings and revenue exceeded expectations while representing excellent year-over-year growth of 272%.
Analysts expect full year EPS for 2022 to grow 95%.
An excellent "A" Accumulation/Distribution Rating shows that PGTI stock is being scooped up by major institutions. Also, it holds top-notch IBD Ratings, including a strong 93 EPS Rating, a 97 Composite Rating and a 93 Relative Strength Rating.
Stocks To Buy And Watch: PGT Innovations
The company achieved record Q2 results, with $407 million in sales surpassing the prior year's revenue by 42%.
On the most recent earnings call, CEO Jeff Jackson cited several contributing factors to growth, including expansion into growing markets and a fresh marketing strategy.
He also noted that PGT's "ability to secure materials through our supply chain kept the factories operating efficiently and our ongoing efforts to increase capacity through process automation, as well as further training of our team members has improved our operational efficiency, allowing us to ship higher product volumes."
Florida remains PGI's largest market but the firm is reaping significant benefit from recent expansion into other markets, including Arizona and Southern California.
