AZZ (AZZ) Falls More Steeply Than Broader Market: What Investors Need to Know

AZZ (AZZ) ended the recent trading session at $135.75, demonstrating a -1.03% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.79%, and the Nasdaq, a tech-heavy index, lost 1.03%.

The electrical equipment maker's stock has dropped by 8.06% in the past month, falling short of the Industrial Products sector's loss of 0.76% and the S&P 500's gain of 2.72%.

Analysts and investors alike will be keeping a close eye on the performance of AZZ in its upcoming earnings disclosure. The company is expected to report EPS of $1.8, up 16.13% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $458.04 million, indicating a 9.77% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.93 per share and a revenue of $1.8 billion, signifying shifts of +11.95% and +9.19%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AZZ. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, AZZ holds a Zacks Rank of #3 (Hold).

From a valuation perspective, AZZ is currently exchanging hands at a Forward P/E ratio of 19.79. Its industry sports an average Forward P/E of 25.45, so one might conclude that AZZ is trading at a discount comparatively.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 25% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research