Lighting fixture manufacturer and provider of specialty chemicals, Acuity Brands, Inc. (AYI - Free Report) was downgraded by Robert W. Baird from Outperform to Neutral on Dec 20. Acuity Brands declined 5.6% to $231.72 from $272.00 while the S&P 500 rose 0.4%.
The firm believes “the potential for a near-term demand lull could keep AYI range bound over the next couple of quarters after consensus FY 2017 and 2018 estimates already embedded a fairly bullish case, leaving a thin margin for error”.
The investment firm has set a price target price of $265 on Acuity Brands. This means Robert W. Baird believes there is a potential increase of 7.91% from the Dec 19 stock price of $245.57.
Investors should note that Acuity Brands’ shares have dipped 8.4% comparing favorably with the Zacks categorized Building Products - Lighting Fixtures industry dip to of 6.3%, year to date. Acuity Brands has also beaten earnings estimates in two of the last four quarters, the average beat being 2%.
Acuity Brands’ adjusted EPS in the fourth quarter of fiscal 2016 increased 27% year over year, but missed the Zacks Consensus Estimate by 7.9%. Fourth-quarter net sales of $925.5 million missed the Zacks Consensus Estimate by 2.4%. Revenues however increased 22% from the year-ago quarter. In fact, the quarter was the 14th in a row to have marked double-digit volume growth for the company.
The company believes that the growth rate for lighting and energy management solutions in the North American market will be in the mid-to-upper single digit range in fiscal 2017. Also, overall demand in its end markets is expected to be strong going ahead.
Key Picks
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. (HOV - Free Report) and AAON, Inc. (AAON - Free Report) .
Gibraltar sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Lighting fixture manufacturer and provider of specialty chemicals, Acuity Brands, Inc. (AYI - Free Report) was downgraded by Robert W. Baird from Outperform to Neutral on Dec 20. Acuity Brands declined 5.6% to $231.72 from $272.00 while the S&P 500 rose 0.4%.
The firm believes “the potential for a near-term demand lull could keep AYI range bound over the next couple of quarters after consensus FY 2017 and 2018 estimates already embedded a fairly bullish case, leaving a thin margin for error”.
The investment firm has set a price target price of $265 on Acuity Brands. This means Robert W. Baird believes there is a potential increase of 7.91% from the Dec 19 stock price of $245.57.
Investors should note that Acuity Brands’ shares have dipped 8.4% comparing favorably with the Zacks categorized Building Products - Lighting Fixtures industry dip to of 6.3%, year to date. Acuity Brands has also beaten earnings estimates in two of the last four quarters, the average beat being 2%.
Acuity Brands’ adjusted EPS in the fourth quarter of fiscal 2016 increased 27% year over year, but missed the Zacks Consensus Estimate by 7.9%. Fourth-quarter net sales of $925.5 million missed the Zacks Consensus Estimate by 2.4%. Revenues however increased 22% from the year-ago quarter. In fact, the quarter was the 14th in a row to have marked double-digit volume growth for the company.
The company believes that the growth rate for lighting and energy management solutions in the North American market will be in the mid-to-upper single digit range in fiscal 2017. Also, overall demand in its end markets is expected to be strong going ahead.
Key Picks
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. (HOV - Free Report) and AAON, Inc. (AAON - Free Report) .
Gibraltar sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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