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

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American Axle & Manufacturing (AXL - Free Report) closed the most recent trading day at $9.46, moving -1.15% from the previous trading session. This move lagged the S&P 500's daily gain of 0.42%.

Heading into today, shares of the maker of auto parts had lost 14.1% over the past month, lagging the Auto-Tires-Trucks sector's gain of 6.83% and the S&P 500's gain of 6.32% in that time.

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 $0.26 per share. This would mark year-over-year growth of 30%. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 0.26% from the year-ago period.

AXL's full-year Zacks Consensus Estimates are calling for earnings of $1.34 per share and revenue of $5.5 billion. These results would represent year-over-year changes of +857.14% and +16.85%, respectively.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. AXL is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, AXL is holding a Forward P/E ratio of 7.31. For comparison, its industry has an average Forward P/E of 14.19, which means AXL is trading at a discount to the group.

Also, we should mention that AXL has a PEG ratio of 0.91. 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. The Automotive - Original Equipment industry currently had an average PEG ratio of 1.06 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% 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.

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