(Re-published with permission)
One phrase of the day among investors seeking AI-resistant stocks is to target “HALO” companies, standing for those with Heavy Assets and Low Obsolescence. Might Carlisle Companies be an example currently fitting the bill?
The industry environment for Carlisle Companies has taken a turn for the worse since it completed its restructuring to become a pure-play U.S. building-products company focused on roofing in 2024. Commercial construction has been pressured by higher interest rates, tariff uncertainty, and capital spending being diverted to all things AI. Residential construction has also been weak, hurt by higher mortgage rates, housing-affordability issues and, recently, low consumer sentiment. 2025 was hardly a disaster for the company – its free-cash-flow margin was over 19% and its return on invested capital was 24% – but revenue growth stalled and
earnings from continuing operations fell over 14%. The share price, now around $347, is off 20% from its high last July.
John Rotonti, manager of Bastion Fiduciary’s Industrial and Infrastructure Portfolio,
thinks that setup spells investment opportunity.
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