American Woodmark (AMWD) Dips More Than Broader Market: What You Should Know
In the latest trading session, American Woodmark (AMWD) closed at $71.15, marking a -1.98% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.22%.
The cabinet maker's shares have seen a decrease of 4.31% over the last month, not keeping up with the Consumer Discretionary sector's gain of 2.3% and the S&P 500's gain of 1.42%.
Market participants will be closely following the financial results of American Woodmark in its upcoming release. The company is predicted to post an EPS of $1.84, indicating a 17.86% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $459.44 million, reflecting a 18.18% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.17 per share and a revenue of $1.83 billion, indicating changes of +7.22% and -11.58%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for American Woodmark. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.25% upward. At present, American Woodmark boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, American Woodmark is currently exchanging hands at a Forward P/E ratio of 8.89. For comparison, its industry has an average Forward P/E of 12.87, which means American Woodmark is trading at a discount to the group.
It's also important to note that AMWD currently trades at a PEG ratio of 0.68. 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. As of the close of trade yesterday, the Furniture industry held an average PEG ratio of 0.94.
The Furniture industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 17% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
