Acuity Brands

After missing estimates in the fourth quarter, Acuity Brands (NYSE: AYI) slipped 4% on Oct. 5. Despite impressive 27% growth, earnings per share of $2.21 fell short of estimates by 18 cents. Revenue grew 22% but missed estimates by $21 million. Management blamed a manufacturing transition that cost the company $25 million in sales and increased expenses by $2 million. The stock, which was down 8% earlier in the day, rose as management assured investors that earnings growth would accelerate in 2017 (year ending August 2017). Although not a perfect quarter, I am still bullish on Acuity and the smart-lighting market it serves. I recommend buying the stock on this dip.

Air Transport Services Group

Air Transport’s (NSDQ: ATSG) customers are gearing up for the busiest e-commerce holiday season ever. Amazon is hiring 120,000 seasonal positions in its fulfillment centers to help handle the boom in spending from its Prime customers. Amazon has leased cargo planes from Air Transport to ensure on-time delivery for holiday shoppers. Third-quarter earnings should be announced the first week of November.

Big Lots

I continue to be excited about our put position in Big Lots (NYSE: BIG; January 2017 42.5 puts). The stock has drifted lower based on analysts’ reports of weak sales at rival retailer Dollar Tree, which faces an increasingly competitive market. Cuts in food assistance programs along with the same competition headwinds that slowed sales at Dollar Tree should hurt Big Lots as well.

Brunswick

Brunswick (NYSE: BC) landed a $72 million multi-year contract to supply Boston Whaler boats to the U.S. government for patrol in the Caribbean and around South America. Although small relative to the $4.5 billion in revenue Brunswick should collect in 2016, the contract speaks to the quality of the boats. We eagerly await Brunswick’s commentary on its fitness business, including its recent acquisition of German indoor cycling equipment maker ICG, when third-quarter earnings are reported Oct. 27.

Charles River Labs

Charles River Labs (NYSE: CRL) bought a small contract research organization that specializes in early-stage drug research and drug molecule discovery. The purchase of Agilux will allow Charles River to improve the efficiency of its clients’ early-stage research efforts. That’s a smart strategy for a company guiding clients through the entire drug research process, from discovery to full FDA approval. Charles River also extended an ongoing program with Genentech to provide research services to this large division of Roche. The program, which began 11 years ago, has expanded over time. The recent extension is for three years. Charles River will announce third-quarter earnings Nov. 2.

Criteo

HookLogic, a private digital advertising company is Criteo’s (NSDQ: CRTO) latest acquisition. The $250 million cash purchase gives Criteo exclusive access to ad inventory on retail websites such as Macy’s, Toys R Us and Sears. HookLogic currently sells ad space to huge consumer brand companies like Keurig, Kraft, Pepsi and Disney. The acquisition will boost revenue in 2017 but won’t affect earnings significantly until 2018. Criteo should report third-quarter earnings the first week of November.

Drew Industries

We anticipate strong revenue growth when Drew Industries (NYSE: DW) reports third-quarter earnings the first week of November. Company customer Thor makes the popular Airstream trailer and reported a 22% increase in sales and a 69% increase in backlog orders. These orders represent future demand for Drew’s RV components.

Gypsum Management and Supply

An Oct. 6 purchase of United Building Materials and United Construction Products expands Gypsum Management and Supply (NYSE: GMS) geographically to three Ohio cities: Cincinnati, Columbus and Dayton. The supplier of drywall, metal framing and acoustical ceiling products also refinanced more than half its debt at a lower interest rate and extended the repayment date to 2021.

Lydall

Lydall (NYSE: LDL) continues to march higher, albeit with little news. I still love the stock and its growth potential from the stronger demand for the company’s materials, which are used in federal infrastructure projects. The company closed its acquisition of Texel in early July and will update investors in early November when third-quarter earnings come out.

Masonite International

The stock of Masonite International (NYSE: DOOR) continues to creep lower since my recommendation. We believe the weakness is due to a softer-than-expected August housing start number. This metric, which is reported on a monthly basis, can be quite volatile. Home starts in August are still up compared to last year, but the estimate for the annual number was lowered by 6%. The only weak spot of the home-building market was the South, where catastrophic floods halted most building construction. I am eager to hear about the company’s progress selling high-end doors on its Nov. 8 earnings conference call.

Mylan

I didn’t expect the huge firestorm of bad publicity regarding Mylan’s (NSDQ: MYL) EpiPen pricing, so the stock has continued to trade lower since my call recommendation on Sept. 16. Fears of price controls have driven down the entire drug group. Timing a trade like this is difficult, which is why I chose the January expiration. That gives us more than three months for the stock to rebound.  I am following the situation closely and am sticking with the bullish call.

Patrick Industries

Strong revenue growth for Patrick Industries (NSDQ: PATK) should continue when it reports third-quarter earnings Oct. 27. Like Drew Industries, Patrick also benefits from the boom in business at Thor. Together with Forest River, Thor makes up over 50% of Patrick’s sales and reported stellar numbers late last month, including a 22% increase in sales and a 69% increase in backlog orders. Both numbers bode well for the future demand of Patrick’s RV components.

Vera Bradley

Vera Bradley (NSDQ: VRA) delayed its planned upgrade of its website because of a security breach. Wisely, the company is waiting until after the holiday season to upgrade the website. Management had expected the revamped website to generate much excitement and has warned that sales may be hurt by the delay, but earnings shouldn’t be affected.