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AZZ (AZZ) Outperforms Broader Market: What You Need to Know

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In the latest trading session, AZZ (AZZ - Free Report) closed at $94.49, marking a +0.79% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 1.24%.

Shares of the electrical equipment maker have appreciated by 13.05% over the course of the past month, outperforming the Industrial Products sector's loss of 6.66% and the S&P 500's gain of 1.17%.

Market participants will be closely following the financial results of AZZ in its upcoming release. The company is expected to report EPS of $1.27, up 6.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $400.28 million, up 4.89% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.08 per share and a revenue of $1.61 billion, signifying shifts of +12.14% and +4.63%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for AZZ. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% lower. AZZ is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, AZZ is currently trading at a Forward P/E ratio of 18.45. This expresses a discount compared to the average Forward P/E of 23.72 of its industry.

Meanwhile, AZZ's PEG ratio is currently 1.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Electronics industry stood at 2.14 at the close of the market yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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