Shares of Albany International (AIN - Free Report) have been strong performers lately, with the stock up 14% over the past month. The stock hit a new 52-week high of $92.88 in the previous session. Albany International has gained 3.2% since the start of the year compared to the -15.5% move for the Zacks Industrial Products sector and the -2.4% return for the Zacks Textile - Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 25, 2022, Albany International reported EPS of $1.06 versus consensus estimate of $0.79 while it beat the consensus revenue estimate by 11.09%.
For the current fiscal year, Albany International is expected to post earnings of $3.48 per share on $985.05 million in revenues. This represents a -2.25% change in EPS on a 6.01% change in revenues. For the next fiscal year, the company is expected to earn $3.61 per share on $1.04 billion in revenues. This represents a year-over-year change of 3.74% and 5.98%, respectively.
Valuation Metrics
Albany International may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Albany International has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 26.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.3X. On a trailing cash flow basis, the stock currently trades at 15.4X versus its peer group's average of 5.4X. Additionally, the stock has a PEG ratio of 4.59. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Albany International currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Albany International fits the bill. Thus, it seems as though Albany International shares could still be poised for more gains ahead.
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Shares of Albany International (AIN - Free Report) have been strong performers lately, with the stock up 14% over the past month. The stock hit a new 52-week high of $92.88 in the previous session. Albany International has gained 3.2% since the start of the year compared to the -15.5% move for the Zacks Industrial Products sector and the -2.4% return for the Zacks Textile - Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 25, 2022, Albany International reported EPS of $1.06 versus consensus estimate of $0.79 while it beat the consensus revenue estimate by 11.09%.
For the current fiscal year, Albany International is expected to post earnings of $3.48 per share on $985.05 million in revenues. This represents a -2.25% change in EPS on a 6.01% change in revenues. For the next fiscal year, the company is expected to earn $3.61 per share on $1.04 billion in revenues. This represents a year-over-year change of 3.74% and 5.98%, respectively.
Valuation Metrics
Albany International may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Albany International has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 26.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.3X. On a trailing cash flow basis, the stock currently trades at 15.4X versus its peer group's average of 5.4X. Additionally, the stock has a PEG ratio of 4.59. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Albany International currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Albany International fits the bill. Thus, it seems as though Albany International shares could still be poised for more gains ahead.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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