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American Axle & Manufacturing (AXL) Dips More Than Broader Markets: What You Should Know

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American Axle & Manufacturing (AXL - Free Report) closed the most recent trading day at $9.07, moving -1.73% from the previous trading session. This move lagged the S&P 500's daily loss of 0.92%.

Coming into today, shares of the maker of auto parts had lost 11.85% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.25%, while the S&P 500 gained 6.83%.

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 $0.24 per share. This would mark year-over-year growth of 20%. 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 $1.35 per share and revenue of $5.5 billion, which would represent changes of +864.29% and +16.85%, respectively, from the prior year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.05% higher within the past month. AXL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, AXL is currently trading at a Forward P/E ratio of 6.61. This represents a discount compared to its industry's average Forward P/E of 13.65.

We can also see that AXL currently has a PEG ratio of 0.82. 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 1.26 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 197, which puts it in the bottom 23% 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 Zacks.com.


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