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Acuity Brands (AYI) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Acuity Brands (AYI) closed the most recent trading day at $130.20, moving -0.31% from the previous trading session. This change lagged the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.05%.

Prior to today's trading, shares of the lighting maker had gained 8.2% over the past month. This has outpaced the Construction sector's gain of 7.17% and the S&P 500's gain of 3.85% in that time.

Wall Street will be looking for positivity from AYI as it approaches its next earnings report date. This is expected to be October 2, 2019. 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 recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. AYI is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that AYI has a Forward P/E ratio of 12.67 right now. For comparison, its industry has an average Forward P/E of 12.67, which means AYI is trading at a no noticeable deviation to the group.

We can also see that AYI currently has a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Lighting was holding an average PEG ratio of 1 at yesterday's closing price.

The Building Products - Lighting industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% 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.

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

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