What Happened?
Shares of building services and installation company TopBuild (NYSE: BLD) jumped 7.3% in the morning session after it completed the acquisition of Specialty Products and Insulation (SPI) for $1 billion in an all-cash transaction.
The deal strengthened TopBuild's position in specialty distribution and expanded its reach into the commercial and industrial markets. SPI, a distributor of mechanical insulation solutions, generated approximately $700 million in revenue and $75 million in EBITDA in the twelve months leading up to June 30, 2025. Investors reacted positively as the acquisition was expected to be immediately accretive to TopBuild's earnings per share. Furthermore, the company projected it would achieve $35 million to $40 million in annual cost savings within two years, making the purchase more financially attractive.
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What Is The Market Telling Us
TopBuild’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 29 days ago when the stock dropped 3.7% on the news that concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
TopBuild is up 38.1% since the beginning of the year, and at $428.40 per share, it is trading close to its 52-week high of $443.31 from August 2025. Investors who bought $1,000 worth of TopBuild’s shares 5 years ago would now be looking at an investment worth $2,334.
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