AZZ Inc. (AZZ - Free Report) currently seems to be a smart choice for investors seeking exposure in the manufacturing electronics space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
This Fort Worth, TX-based company currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. It belongs to the Zacks Manufacturing - Electronics industry, which belongs to the broader Zacks Industrial Products sector.
We believe that technological advancement in manufacturing processes, favorable changes in tax policies and growth in e-commerce business have been benefiting the industry.
Below we discussed why investing in AZZ will be a smart choice.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of AZZ over time. Year to date, the company’s share price has gained 8.1% compared with the industry’s growth of 4.6%.
It is worth mentioning here that AZZ reported earnings of $1.96 in fiscal 2019 (ended Feb 28, 2019), above $1.73 recorded in fiscal 2018.
For fiscal 2020 (ending February 2020), the company anticipates gaining from healthy segmental growth opportunities, acquired assets and its digital galvanizing systems (DGS) initiatives. Earnings in the fiscal year are predicted to be $2.25-$2.75, above $1.96 earned in fiscal 2019.
In the past 30 days, earnings estimates for the company in fiscal 2020 and fiscal 2021 (ending February 2021) have been revised upward, reflecting positive sentiments about its growth prospects. Currently, the Zacks Consensus Estimate for earnings is pegged at $2.59 for fiscal 2020 and $3.14 for fiscal 2021, suggesting growth of 2.8% and 2.3% from the respective 30-day-ago figures.
AZZ Inc. Price and Consensus