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American Axle & Manufacturing (AXL) Outpaces Stock Market Gains: What You Should Know

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American Axle & Manufacturing (AXL) closed the most recent trading day at $9.37, moving +1.63% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.02%.

Prior to today's trading, shares of the maker of auto parts had lost 16.86% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 1.33% and the S&P 500's gain of 3.01% in that time.

Investors will be hoping for strength from AXL as it approaches its next earnings release, which is expected to be July 30, 2021. In that report, analysts expect AXL to post earnings of $0.01 per share. This would mark year-over-year growth of 100.56%. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 130.47% from the year-ago period.

AXL's full-year Zacks Consensus Estimates are calling for earnings of $1.49 per share and revenue of $5.54 billion. These results would represent year-over-year changes of +964.29% and +17.53%, respectively.

Investors should also note any recent changes to analyst estimates for AXL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 0.68% higher. AXL is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that AXL has a Forward P/E ratio of 6.2 right now. Its industry sports an average Forward P/E of 12.32, so we one might conclude that AXL is trading at a discount comparatively.

Also, we should mention that AXL has a PEG ratio of 0.77. 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. The Automotive - Original Equipment was holding an average PEG ratio of 0.85 at yesterday's closing price.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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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