Yahoo Finance Why AZZ (AZZ) Dipped More Than Broader Market Today
The latest trading session saw AZZ (AZZ) ending at $77.75, denoting a -0.5% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.31%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.
Prior to today's trading, shares of the electrical equipment maker had lost 7.64% over the past month. This has lagged the Industrial Products sector's loss of 5.25% and the S&P 500's gain of 2.73% in that time.
The upcoming earnings release of AZZ will be of great interest to investors. The company's upcoming EPS is projected at $1.31, signifying a 14.91% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $398.9 million, reflecting a 2.05% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.96 per share and revenue of $1.6 billion. These totals would mark changes of +9.49% and +3.95%, respectively, from last year.
Any recent changes to analyst estimates for AZZ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.32% increase. At present, AZZ boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, AZZ is presently being traded at a Forward P/E ratio of 15.75. This represents a discount compared to its industry's average Forward P/E of 22.49.
It is also worth noting that AZZ currently has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.9 at the close of the market yesterday.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AZZ Inc. (AZZ) : Free Stock Analysis Report
