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American Axle & Manufacturing (AXL) Outpaces Stock Market Gains: What You Should Know

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American Axle & Manufacturing (AXL - Free Report) closed the most recent trading day at $9.80, moving +1.45% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 1.76%.

Coming into today, shares of the maker of auto parts had lost 8.95% in the past month. In that same time, the Auto-Tires-Trucks sector gained 0.64%, while the S&P 500 gained 4.55%.

Investors will be hoping for strength from AXL as it approaches its next earnings release. In that report, analysts expect AXL to post earnings of $0.30 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 0.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $5.5 billion, which would represent changes of +857.14% and +16.85%, respectively, from the prior year.

Any recent changes to analyst estimates for AXL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. AXL is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, AXL currently has a Forward P/E ratio of 7.2. Its industry sports an average Forward P/E of 14.73, so we one might conclude that AXL is trading at a discount comparatively.

Also, we should mention that AXL has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Original Equipment was holding an average PEG ratio of 1.27 at yesterday's closing price.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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