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Quanex Building Products (NX) Gains But Lags Market: What You Should Know

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In the latest trading session, Quanex Building Products (NX - Free Report) closed at $19.59, marking a +1.56% move from the previous day. The stock lagged the S&P 500's daily gain of 1.86%. At the same time, the Dow added 1.98%, and the tech-heavy Nasdaq gained 0.15%.

Heading into today, shares of the housing materials maker had lost 5.76% over the past month, outpacing the Construction sector's loss of 7.95% and the S&P 500's loss of 12.37% in that time.

Wall Street will be looking for positivity from Quanex Building Products as it approaches its next earnings report date. This is expected to be June 2, 2022. On that day, Quanex Building Products is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 4.65%. Our most recent consensus estimate is calling for quarterly revenue of $287.8 million, up 6.45% from the year-ago period.

NX's full-year Zacks Consensus Estimates are calling for earnings of $1.93 per share and revenue of $1.14 billion. These results would represent year-over-year changes of +10.29% and +6.35%, respectively.

Investors should also note any recent changes to analyst estimates for Quanex Building Products. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Quanex Building Products is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Quanex Building Products currently has a Forward P/E ratio of 9.99. Its industry sports an average Forward P/E of 12.81, so we one might conclude that Quanex Building Products 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 156, which puts it in the bottom 39% 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.

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