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Acuity Brands (AYI) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Acuity Brands (AYI) closed at $120.43 in the latest trading session, marking a -0.44% move from the prior day. This change lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.34%.

Prior to today's trading, shares of the lighting maker had lost 10.31% over the past month. This has lagged the Construction sector's loss of 1.96% and the S&P 500's loss of 4.64% in that time.

Wall Street will be looking for positivity from AYI as it approaches its next earnings report date. The company is expected to report EPS of $2.84, up 5.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, down 2.8% from the year-ago period.

AYI's full-year Zacks Consensus Estimates are calling for earnings of $9.68 per share and revenue of $3.77 billion. These results would represent year-over-year changes of +9.5% and +2.34%, respectively.

It is also important to note the recent changes to analyst estimates for AYI. 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 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AYI is currently a Zacks Rank #3 (Hold).

Looking at its valuation, AYI is holding a Forward P/E ratio of 12.5. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.5.

We can also see that AYI currently has a PEG ratio of 1.19. 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 0.94 as of yesterday's close.

The Building Products - Lighting industry is part of the Construction sector. This group has a Zacks Industry Rank of 248, putting it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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