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Acuity Brands (AYI) Gains But Lags Market: What You Should Know

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In the latest trading session, Acuity Brands (AYI - Free Report) closed at $132.41, marking a +1.6% move from the previous day. This change lagged the S&P 500's 1.88% gain on the day. At the same time, the Dow added 1.43%, and the tech-heavy Nasdaq gained 2.24%.

Prior to today's trading, shares of the lighting maker had gained 1.85% over the past month. This has outpaced the Construction sector's loss of 1.89% and the S&P 500's loss of 3.48% in that time.

Investors will be hoping for strength from AYI as it approaches its next earnings release. In that report, analysts expect AYI to post earnings of $2.84 per share. This would mark year-over-year growth of 5.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, down 2.8% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.68 per share and revenue of $3.77 billion. These totals would mark changes of +9.5% and +2.34%, respectively, from last year.

Any recent changes to analyst estimates for AYI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AYI is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note AYI's current valuation metrics, including its Forward P/E ratio of 13.47. For comparison, its industry has an average Forward P/E of 13.47, which means AYI is trading at a no noticeable deviation to the group.

It is also worth noting that AYI currently has a PEG ratio of 1.28. 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. AYI's industry had an average PEG ratio of 0.96 as of yesterday's close.

The Building Products - Lighting industry is part of the Construction sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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