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AZZ (AZZ) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, AZZ (AZZ - Free Report) closed at $81.65, marking a -0.01% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.98%.

The electrical equipment maker's shares have seen a decrease of 14.53% over the last month, not keeping up with the Industrial Products sector's loss of 4.3% and the S&P 500's gain of 0.34%.

Investors will be eagerly watching for the performance of AZZ in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.27, showcasing a 6.72% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $400.28 million, indicating a 4.89% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.08 per share and revenue of $1.61 billion, indicating changes of +12.14% and +4.63%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for AZZ. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% lower. AZZ presently features a Zacks Rank of #3 (Hold).

With respect to valuation, AZZ is currently being traded at a Forward P/E ratio of 16.08. For comparison, its industry has an average Forward P/E of 22.86, which means AZZ is trading at a discount to the group.

Meanwhile, AZZ's PEG ratio is currently 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Electronics industry had an average PEG ratio of 2.08 as trading concluded yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 126, this industry ranks in the top 50% of all industries, numbering over 250.

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.

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


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