Since May 2025, Gibraltar has been in a holding pattern, posting a small loss of 3.9% while floating around $59.14. The stock also fell short of the S&P 500’s 13% gain during that period.
Is there a buying opportunity in Gibraltar, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free for active Edge members.
Why Is Gibraltar Not Exciting?
We're cautious about Gibraltar. Here are three reasons why ROCK doesn't excite us and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Gibraltar grew its sales at a sluggish 2.5% compounded annual growth rate. This fell short of our benchmarks.
2. Projected Revenue Growth Is Slim
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Gibraltar’s revenue to rise by 4%. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.
3. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Gibraltar’s EPS grew at an unimpressive 7.2% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 2.5% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
Final Judgment
Gibraltar isn’t a terrible business, but it isn’t one of our picks. With its shares underperforming the market lately, the stock trades at 13.1× forward P/E (or $59.14 per share). While this valuation is reasonable, we don’t really see a big opportunity at the moment. We're pretty confident there are superior stocks to buy right now. We’d suggest looking at the most dominant software business in the world.
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