AWI - Armstrong World Industries Worth Watching For An 'Air Pocket'

• Armstrong beat revenue expectations in the second quarter, helped by strong renovation demand, but higher input and supply costs did chew up some of the upside.
• Management has built a focused, efficient business with strong share and impressive pricing power, but there could be some near-term challenges as renovation activity eases ahead of rebounding new-builds.
• Armstrong's valuation today makes me ambivalent about the shares; I like the management team and the long-term story, but the valuation today seems to reflect a lot of the positives.

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