Back to top

Image: Bigstock

AdvanSix (ASIX) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, AdvanSix (ASIX - Free Report) closed at $44.96, marking a -0.77% move from the previous day. This move lagged the S&P 500's daily gain of 0.92%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.54%.

Prior to today's trading, shares of the polymer resins producer had gained 6.71% over the past month. This has outpaced the Basic Materials sector's gain of 3.29% and the S&P 500's loss of 0.85% in that time.

Investors will be hoping for strength from AdvanSix as it approaches its next earnings release. The company is expected to report EPS of $0.81, down 13.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $401.97 million, up 18.13% from the year-ago period.

Investors might also notice recent changes to analyst estimates for AdvanSix. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AdvanSix is currently a Zacks Rank #2 (Buy).

Investors should also note AdvanSix's current valuation metrics, including its Forward P/E ratio of 9.03. This valuation marks a discount compared to its industry's average Forward P/E of 17.33.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


AdvanSix (ASIX) - free report >>

Published in