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American Woodmark (AMWD) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, American Woodmark (AMWD - Free Report) closed at $92.61, marking a -1.53% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.82%.

The cabinet maker's shares have seen an increase of 2.42% over the last month, not keeping up with the Consumer Discretionary sector's gain of 5% and the S&P 500's gain of 5.3%.

The investment community will be closely monitoring the performance of American Woodmark in its forthcoming earnings report. The company is scheduled to release its earnings on February 29, 2024. In that report, analysts expect American Woodmark to post earnings of $1.13 per share. This would mark a year-over-year decline of 22.6%. Meanwhile, our latest consensus estimate is calling for revenue of $366.9 million, down 23.68% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.47 per share and revenue of $1.79 billion, indicating changes of +11.15% and -13.31%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Woodmark. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, American Woodmark boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, American Woodmark is currently exchanging hands at a Forward P/E ratio of 11.1. This expresses a discount compared to the average Forward P/E of 15.66 of its industry.

We can additionally observe that AMWD currently boasts a PEG ratio of 0.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Furniture industry had an average PEG ratio of 1.06 as trading concluded yesterday.

The Furniture industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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