Acuity Brands

Three of Acuity Brand’s (NYSE: AYI) decorative LED luminaires won a 2016 Lighting for Tomorrow award. The prestigious competition recognizes the best decorative, energy-efficient luminaires in the market and is organized by the American Lighting Association, the Consortium for Energy Efficiency, and Underwriters Laboratories. Acuity’s unusual lighting products showcase the company’s ability to integrate simple LEDs into complex, highly profitable lighting designs. Acuity will report its fiscal fourth quarter (ending in August) on Oct. 5.

Brunswick

Fitch Ratings has assigned a first-time BBB bond rating to Brunswick Corp.  (NYSE: BC). This is an investment-grade rating, and the rating outlook is “stable.” The rating reflects Brunswick’s strong competitive positions in its marine and fitness segments, low leverage and a better business mix that includes more fitness products and fewer cyclical marine parts and accessories. Fitch believes Brunswick is in a stronger position today to weather a downturn relative to the last recession.

Charles River Labs

At an analyst meeting recently, CEO James Foster said that demand for Charles River Labs (NYSE: CRL) remains robust and that high use rates in labs are keeping prices high. He is seeing little price competition. The integration of WIL, purchased in April, is going exceptionally well, and the company is on track with its goals for paying down debt by year-end.

Criteo

At its annual investor day on Sept. 15, Criteo (NSDQ: CRTO) management noted that e-commerce purchases made on mobile phones grew 30% in the first half of 2016 and surpassed desktop as the primary device for purchases. Criteo’s cross-platform, targeted marketing software helps retailers deliver more relevant ads in response to consumer behavior on different devices. Analysts are excited about Criteo’s new search product, which is in beta testing and may be available as early as 2017.

Drew Industries

We remain bullish on Drew Industries (NYSE: DW). Thor Industries, Drew’s largest customer, reports earnings on Sept. 26. Thor’s stock was recently upgraded by Northcoast Research, a firm known for getting its information about a company from its suppliers and distributors rather than from the company itself. Thor also just acquired Jayco, a smaller RV manufacturer famous for its towable RVs. We’ll be closely following Thor’s news for more data about consumer demand.

GMS

A leading distributor of wallboard and suspended-ceiling products in North America, GMS (NYSE: GMS) went public in May 2016 and currently trades just above its initial public offering price. A mid-September report that just missed analysts’ revenue estimates sent the stock down 8%, giving investors the rare chance to buy it close to its $21 issue price.

GMS reported its 20th consecutive quarter of double-digit sales growth. Revenue leaped 22% and earnings an even greater 35% due to more profitable products. GMS’s expertise in precise delivery of gypsum and wallboard products makes it a favorite of builders.

Build up your portfolio with GMS, a stock that could rise 60% from today’s levels. A strong base business boosted by acquisitions of regional competitors should expand earnings per share 22% to $1.74 in 2016 and another 18% in 2017. Target: $36.

Masonite

Interest-rate-sensitive stocks slumped earlier this month on fears that the Federal Reserve will raise rates this week, and Masonite (NYSE: DOOR), a company whose business is tied to home building, took a bit of a hit. We like Masonite’s strategy, which relies on moving customers up to higher-quality, more profitable doors, as opposed to pure unit growth. Housing bellwethers Lennar and KB Homes report earnings this week, and that should give us more insight into housing demand. Although Masonite sells directly to Lowe’s and Home Depot, demand trends for home builders influence the longer term trajectory of its revenue growth.

Patrick Industries

The RV industry is booming, and Patrick Industries (NSDQ: PATK) makes building and component products for the recreational vehicle, manufactured housing and industrial markets. Like portfolio holding Drew Industries, Patrick is enjoying the secular rise in demand for RVs. Earnings are expected to grow almost 30% this year.

Jump on board as baby boomers and millennials pump up demand for RVs and the RV parts that Patrick makes. Positive sentiment from dealers and RV makers support continued growth. The popularity of RVs with younger first-time customers is broadening market potential.

Earnings grew 35% in the first half of this year and are expected to grow 24% in the second half. Growth in 2017 is expected to slow to 16%, but Patrick has been able to zoom past estimates by taking market share and acquiring complementary component companies. Our target is based on 20 times 2017 estimates. Target: $80.

SolarEdge

I’m giving up on SolarEdge (NSDQ: SEDG). Without a doubt it has been one of the most frustrating stocks I’ve worked with in my career. Solid earnings and the best balance sheet in the sector have not been enough to fight negative industry sentiment.

The renewable energy industry has had dramatic ups and down in the past and is particularly susceptible to negative sentiment. I don’t expect the stock to go much lower, but it is well below my $16 stop-loss price and has not found any footing despite encouraging remarks from management.

Vera Bradley

Vera (NSDQ: VRA) was able to sidestep the poor mall traffic that has devastated so many retailers. The company reported 14 cents in earnings per share for the second quarter, a penny better than expected. Revenue was $119.2 million, slightly more than estimates.

Although the company lowered 2017 EPS estimates by 4 cents to 90 cents, excitement over new licensing deals in stationery, a newly opened SoHo flagship store and a new line of footwear carried the stock higher. Most of the reduction in estimates is due to a 3-cent asset impairment charge taken in the second quarter, which means the profit estimates for the business haven’t really changed.