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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 $8.92, moving +1.25% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.15%.

Prior to today's trading, shares of the maker of auto parts had gained 1.38% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 2.16% and outpaced the S&P 500's loss of 4.67% in that time.

AXL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.04, down 103.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.35 billion, down 4.74% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.38 per share and revenue of $5.48 billion, which would represent changes of +885.71% and +16.33%, respectively, from the prior year.

Any recent changes to analyst estimates for AXL should also be noted by investors. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.77% lower. AXL is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that AXL has a Forward P/E ratio of 6.4 right now. This represents a discount compared to its industry's average Forward P/E of 12.78.

We can also see that AXL currently has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.71 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 208, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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