Armstrong World (AWI) Joins Price Industries, Boosts Innovation

To maintain its position as a leading manufacturer of sustainable ceiling and wall solutions, Armstrong World Industries, Inc. AWI continues partnering and collaborating with various companies. Recently, AWI extended its partnership with Price Industries, a leader in the commercial construction industry.

Both companies will focus on accelerating the development of holistic solutions to promote healthy indoor spaces. The two companies have launched their first product, the StrataCleanIQ, a ceiling-mounted filtration unit using MERV 13 filtration.

Both companies will continue to develop new products that address the key attributes of healthy spaces. In addition, Armstrong and Price will ally on IEQ research and testing, marketing and industry leadership, including advancing indoor environmental quality (IEQ) standards into commercial building codes.

Price runs industry-leading research and technology centers and has developed deep relationships in the mechanical engineering community. Both the companies have been fulfilling the need for healthy building solutions that support IEQ.

The COVID-19 pandemic highlighted the pressing need for indoor air quality that is influenced by factors like acoustics, light, air quality and thermal comfort. All four components are critical for overall physical and psychological well-being and productivity.

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Armstrong’s chief executive officer, Vic Grizzle, said, “Now, more than ever, we see increasing demand for products that can make a meaningful impact on healthy indoor spaces. By building on our complementary strengths and our shared commitment to innovation, customer-centric values ​​and sustainability, I’m confident we can bring the new solutions needed to make every space a healthy space.”

Digital Innovation & New Technology to Drive Growth

Armstrong World remains focused on digitization initiatives and new technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its contribution to growth. During 2021, the company continued with additional digital investments, with several initiatives focusing on speed and cost benefits for customers.

On March 1, AWI and Irving Consumer Products announced a partnership between their respective Macon, Georgia, facilities. Per the deal, Irving Consumer Products will begin diverting its tissue fiber waste to AWI’s mineral fiber plant. This will help reduce Armstrong’s need to source and purchase recycled newsprint as an input raw material for its ceilings.

In October 2021, AWI teamed up with 9 Foundations, Inc., an independent scientific advisory firm. 9F continues to work towards Armstrong’s focus on manufacturing ceiling and wall solutions based on the most advanced healthy building science and design.

Armstrong World’s shares have underperformed the Zacks Building Products – Miscellaneous industry in the past three months.

Zacks Rank & Key Picks

Currently, Armstrong World carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arcosa, Inc. ACA: This Dallas, TX-based company provides infrastructure-related products and solutions. The company remains focused on its long-term vision to lessen the complexity of Arcosa’s overall portfolio and shift its business mix towards less cyclical, higher-margin growth opportunities that leverage core strengths and drive long-term shareholder value creation.

Recently, it signed a deal to sell its storage tanks business and aims to invest the proceeds into its key growth businesses. Also, ACA’s inorganic drive to expand its portfolio, improved efficiencies in utility business structures and solid execution in cyclical businesses, should drive growth.

Arcosa, a Zacks Rank #1 stock, has seen an upward estimate revision for 2022 earnings over the past 60 days to $1.83 per share from $1.79.

Quanex Building Products Corp. NX: This Houston, TX-based company provides components for the fenestration industry worldwide. Despite ongoing challenges related to inflation and the supply chain, NX registered higher demand for its products during the second quarter of fiscal 2022 and it has begun to see the benefit of its pass-through pricing strategy, which drove revenue growth and improved profitability.

The company expects further margin expansion in the second half of fiscal 2022 despite inflationary pressure. It is focused on generating cash, paying down debt and opportunistically repurchasing stock.

Quanex has seen a 21.8% upward estimate revision for fiscal 2022 earnings over the past 30 days. This Zacks Rank #1 company’s earnings for fiscal 2022 are expected to rise 34.3% from fiscal 2021.

TopBuild Corp. BLD: TopBuild currently carries a Zacks Rank #2 (Buy). This Daytona Beach, FL-based company is an installer and distributor of insulation and other building products to the US construction industry. The company has been benefitting from increased sales volume, solid contribution from acquisitions and pricing at both businesses and defying the labor and material-constrained market.

TopBuild delivered an earnings surprise of 8.7%, on average, in three of the trailing four. The Zacks Consensus Estimate for 2022 earnings reflects 37.6% year-over-year growth.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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