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

Zacks Equity Research

In the latest trading session, Acuity Brands (AYI) closed at $124.75, marking a +0.12% move from the previous day. The stock lagged the S&P 500's daily gain of 1.3%. At the same time, the Dow added 1.41%, and the tech-heavy Nasdaq gained 1.75%.

Coming into today, shares of the lighting maker had lost 4.39% in the past month. In that same time, the Construction sector gained 3.11%, while the S&P 500 gained 0.46%.

Wall Street will be looking for positivity from AYI as it approaches its next earnings report date. 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.

Any recent changes to analyst estimates for AYI should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AYI currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, AYI is holding a Forward P/E ratio of 12.07. For comparison, its industry has an average Forward P/E of 12.07, which means AYI is trading at a no noticeable deviation to the group.

Meanwhile, AYI's PEG ratio is currently 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Lighting industry currently had an average PEG ratio of 0.95 as of yesterday's close.

The Building Products - Lighting industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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