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Quanex Building Products (NX) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Quanex Building Products (NX - Free Report) closed at $26.18, marking a -0.53% move from the previous day. This change lagged the S&P 500's daily gain of 0.99%.

Prior to today's trading, shares of the housing materials maker had lost 3.94% over the past month. This has lagged the Construction sector's loss of 0.33% and the S&P 500's loss of 0.26% in that time.

Investors will be hoping for strength from NX as it approaches its next earnings release, which is expected to be June 3, 2021. The company is expected to report EPS of $0.34, up 78.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $217.5 million, up 16.01% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.46 per share and revenue of $957.7 million. These totals would mark changes of +17.74% and +12.46%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 remained stagnant within the past month. NX is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, NX is holding a Forward P/E ratio of 18.03. Its industry sports an average Forward P/E of 21.94, so we one might conclude that NX is trading at a discount comparatively.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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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