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AZZ Inc. (AZZ) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been AZZ (AZZ - Free Report) . Shares have been marching higher, with the stock up 5.9% over the past month. The stock hit a new 52-week high of $119.95 in the previous session. AZZ has gained 45.9% since the start of the year compared to the 7.6% gain for the Zacks Industrial Products sector and the 9.7% return for the Zacks Manufacturing - Electronics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 9, 2025, AZZ reported EPS of $1.78 versus consensus estimate of $1.58 while it missed the consensus revenue estimate by 3.64%.
For the current fiscal year, AZZ is expected to post earnings of $6.01 per share on $1.67 in revenues. This represents a 15.58% change in EPS on a 6.08% change in revenues. For the next fiscal year, the company is expected to earn $6.53 per share on $1.74 in revenues. This represents a year-over-year change of 8.65% and 4.15%, respectively.
Valuation Metrics
While AZZ has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
AZZ has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 19.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.4X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 22.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making AZZ an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, AZZ currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if AZZ passes the test. Thus, it seems as though AZZ shares could still be poised for more gains ahead.
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AZZ Inc. (AZZ) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been AZZ (AZZ - Free Report) . Shares have been marching higher, with the stock up 5.9% over the past month. The stock hit a new 52-week high of $119.95 in the previous session. AZZ has gained 45.9% since the start of the year compared to the 7.6% gain for the Zacks Industrial Products sector and the 9.7% return for the Zacks Manufacturing - Electronics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 9, 2025, AZZ reported EPS of $1.78 versus consensus estimate of $1.58 while it missed the consensus revenue estimate by 3.64%.
For the current fiscal year, AZZ is expected to post earnings of $6.01 per share on $1.67 in revenues. This represents a 15.58% change in EPS on a 6.08% change in revenues. For the next fiscal year, the company is expected to earn $6.53 per share on $1.74 in revenues. This represents a year-over-year change of 8.65% and 4.15%, respectively.
Valuation Metrics
While AZZ has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
AZZ has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 19.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.4X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 22.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making AZZ an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, AZZ currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if AZZ passes the test. Thus, it seems as though AZZ shares could still be poised for more gains ahead.