What Happened?

Shares of building envelope solutions provider Carlisle Companies (NYSE:CSL) fell 8.4% in the morning session after 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.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Carlisle? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Carlisle’s shares are not very volatile and have only had 2 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.

Carlisle is up 36.1% since the beginning of the year, but at $421.09 per share, it is still trading 12.4% 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 $2,721.

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