Back to top

Image: Bigstock

American Axle & Manufacturing (AXL) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, American Axle & Manufacturing (AXL - Free Report) closed at $8.93, marking a +1.36% move from the previous day. The stock lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 2.55%.

Heading into today, shares of the maker of auto parts had gained 5.64% over the past month, lagging the Auto-Tires-Trucks sector's gain of 5.88% and outpacing the S&P 500's loss of 0.35% in that time.

Wall Street will be looking for positivity from AXL as it approaches its next earnings report date. This is expected to be February 12, 2021. On that day, AXL is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 130.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, down 4.55% from the year-ago period.

Investors should also note any recent changes to analyst estimates for AXL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.21% higher. AXL is currently a Zacks Rank #1 (Strong Buy).

Investors should also note AXL's current valuation metrics, including its Forward P/E ratio of 8.31. This represents a discount compared to its industry's average Forward P/E of 16.15.

Investors should also note that AXL has a PEG ratio of 1.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AXL in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

American Axle & Manufacturing Holdings, Inc. (AXL) - free report >>

Published in