Acuity Brands (AYI) Stock Sinks As Market Gains: What You Should Know
Acuity Brands (AYI) closed at $159.85 in the latest trading session, marking a -0.87% move from the prior day. This move lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.
Prior to today's trading, shares of the lighting maker had gained 2.84% over the past month. This has lagged the Construction sector's gain of 5.22% and the S&P 500's gain of 3.98% in that time.
Acuity Brands will be looking to display strength as it nears its next earnings release, which is expected to be June 29, 2023. The company is expected to report EPS of $3.60, up 2.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, down 2.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.74 per share and revenue of $4.06 billion, which would represent changes of +7.09% and +1.39%, respectively, from the prior year.
Any recent changes to analyst estimates for Acuity Brands should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.07% lower within the past month. Acuity Brands is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Acuity Brands has a Forward P/E ratio of 11.74 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.9.
Meanwhile, AYI's PEG ratio is currently 1.17. 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 industry currently had an average PEG ratio of 1.17 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 62, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
Acuity Brands Inc (AYI) : Free Stock Analysis Report
