American Axle & Manufacturing (AXL) Gains As Market Dips: What You Should Know
American Axle & Manufacturing (AXL) closed at $11.75 in the latest trading session, marking a +1.03% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.2%.
Heading into today, shares of the maker of auto parts had gained 7.59% over the past month, lagging the Auto-Tires-Trucks sector's gain of 9.44% and outpacing the S&P 500's gain of 2.11% in that time.
Wall Street will be looking for positivity from AXL as it approaches its next earnings report date. On that day, AXL is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 103.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.24 billion, up 140.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.48 per share and revenue of $5.53 billion. These totals would mark changes of +957.14% and +17.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AXL. These revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection has moved 2.07% higher. AXL is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that AXL has a Forward P/E ratio of 7.88 right now. Its industry sports an average Forward P/E of 13.71, so we one might conclude that AXL is trading at a discount comparatively.
Investors should also note that AXL has a PEG ratio of 0.98 right now. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% 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 AXL in the coming trading sessions, be sure to utilize Zacks.com.
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American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
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