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

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AdvanSix (ASIX) closed at $34.18 in the latest trading session, marking a +1.15% move from the prior day. The stock lagged the S&P 500's daily gain of 2.45%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.4%.

Heading into today, shares of the polymer resins producer had lost 24.69% over the past month, lagging the Basic Materials sector's loss of 9.64% and the S&P 500's loss of 5.71% in that time.

AdvanSix will be looking to display strength as it nears its next earnings release. On that day, AdvanSix is projected to report earnings of $2.39 per share, which would represent year-over-year growth of 56.21%. Meanwhile, our latest consensus estimate is calling for revenue of $557.5 million, up 27.38% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.99 per share and revenue of $2.07 billion. These totals would mark changes of +66.11% and +22.93%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for AdvanSix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 4.65% lower. AdvanSix is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that AdvanSix has a Forward P/E ratio of 4.23 right now. This represents a discount compared to its industry's average Forward P/E of 13.66.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.

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

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