Acuity Brands

Acuity Brands (NYSE: AYI) was initiated with a buy rating by Deutsche Bank. The firm has a $300 target on the stock and loves its “unique competitive advantage” in the lighting market. I couldn’t agree more. Acuity has a full portfolio of lighting solutions that incorporate economical LED lights and smart heating solutions for corporations.

Air Transport Services Group

Air Transport Services Group (NSDQ: ATSG) reported on Nov. 23 that the pilots on strike at its ABX facility would return to work that day. A judge granted a temporary injunction to halt the strike and instructed both parties to resolve what he described as “minor disputes” in arbitration. Although not all of the planes Amazon leases from Air Transport are operated by the ABX pilots, investors breathed a sigh of relief that the strike ended just as the busiest season for shuttling Amazon’s packages begins.

Ambarella

Ambarella (NSDQ: AMBA) beat third-quarter estimates handily. Earnings per share came in at $1.11, 17 cents higher than estimates and up slightly year over year. Management’s cautious tone regarding fourth-quarter sales, however, prompted the stock to trade down. Compared to previous quarters, Ambarella added many more new customers that use the company’s video camera chips in consumer products, such as drones.  I believe management is being extremely cautious in guiding to a revenue number that is just 3% below estimates while it waits to hear how much inventory these customers have on hand.

The company continues to add new automotive customers, which will reduce its dependency on consumer whims. Mercedes Benz, for instance, began shipping models with dash cams. Management specifically noted that other carmakers are accelerating their adoption of dash cam recorders that use Ambarella’s chips.

Brunswick Corp.

Brunswick Corp. (NYSE: BC) acquired a small distributor of marine parts and accessories in British Columbia. The acquired company generated just $17 million in annual sales, a miniscule amount compared to Brunswick’s $4.5 billion in yearly revenue, but should allow Brunswick to expand its Canadian business. Estimates were up slightly year over year. The stock traded down because of management’s cautious tone regarding fourth-quarter sales but has since bounced back based on optimistic consumer sentiment.

Criteo

Criteo (NSDQ: CRTO) customer Facebook reported accelerating growth in the number of its Instagram users, up 40% recently. Criteo helps deliver targeted ads to Instagram users across multiple mobile devices, including laptops and smartphones. Higher user counts and greater engagement are positive signs for Criteo, which will be at several investor conferences before reporting the results of its next quarter in early February. I’ll keep my ears peeled for updates.

Gypsum Mgmt.

Gypsum Management and Supply (NYSE: GMS) reported a solid second quarter last week. Revenue for the ceiling tile and wallboard supplier grew 29% to $592 million, beating estimates of $586 million. Earnings were 46 cents per share, slightly shy of analysts’ estimates of 48 cents. Higher overtime and transportation expenses caused the shortfall, but management expects these costs to level out soon. Moody’s  upgraded Gypsum’s corporate debt to B2 from B3, and Standard & Poor’s raised its rating to B+ from a B during the second quarter of fiscal year 2017. This allowed Gypsum to refinance its debt with a one-quarter-point reduction in interest rates. Strong results from homebuilder Lennar are another good omen for Gypsum’s growth.

Patrick Industries

Patrick Industries (NSDQ: PATK) acquired certain assets of two Indiana-based RV component suppliers. The purchase gives Patrick access to specialty PVC wires, cables and harnesses that are used to make RVs and expands the company’s opportunity to increase the dollars of content per vehicle manufactured. The $25 million purchase will add $21 million in annual sales, beefing up profits. Thor Industries, a major customer of Patrick Industries and a supplier to Camping World, reported a stellar quarter. Thor’s revenue, including its acquisition of RV manufacturer Jayco, was up 66% and up 14% for its basic business. Most important, for our stocks, the company’s backlog more than doubled. Thor expects 2017 to be the best year for wholesale shipments of RVs since the 1970s.

PVH Corp.

PVH Corp. (NYSE: PVH) reported a mixed quarter. Although its non-standard-accounting numbers beat estimates by 20 cents per share, there were several unexpected adjustments that drove those numbers up, primarily a larger currency expense and the delay of some marketing costs that will be incurred in the fourth quarter.

As expected, PVH’s stock reversed and slid downward as the market recognized possible softness in the company’s sales of its Calvin Klein and Tommy Hilfiger brands. Reports of ballooning discounts for the brands at department stores and weak holiday sales continue to pressure the stock, which is now well below the 95 strike price of the puts I bought.