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AdvanSix (ASIX) Gains But Lags Market: What You Should Know

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AdvanSix (ASIX) closed at $39.29 in the latest trading session, marking a +1.13% move from the prior day. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the polymer resins producer had gained 16.18% over the past month. This has outpaced the Basic Materials sector's loss of 5.45% and the S&P 500's gain of 6.69% in that time.

Wall Street will be looking for positivity from AdvanSix as it approaches its next earnings report date. This is expected to be August 5, 2022. The company is expected to report EPS of $2.39, up 56.21% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $557.5 million, up 27.38% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.99 per share and revenue of $2.07 billion, which would represent changes of +66.11% and +22.93%, respectively, from the prior year.

Any recent changes to analyst estimates for AdvanSix should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AdvanSix is currently a Zacks Rank #2 (Buy).

Digging into valuation, AdvanSix currently has a Forward P/E ratio of 4.86. For comparison, its industry has an average Forward P/E of 15.18, which means AdvanSix is trading at a discount to the group.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 48% 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.

To follow ASIX in the coming trading sessions, be sure to utilize Zacks.com.

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