American Woodmark (AMWD) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with American Woodmark (AMWD) standing at $71.94, reflecting a -1.09% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.3%.
The the stock of cabinet maker has fallen by 2.48% in the past month, lagging the Consumer Discretionary sector's gain of 6.27% and the S&P 500's gain of 3.08%.
Market participants will be closely following the financial results of American Woodmark in its upcoming release. The company's earnings per share (EPS) are projected to be $1.77, reflecting a 20.98% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $454.52 million, indicating a 19.05% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.99 per share and a revenue of $1.81 billion, demonstrating changes of +4.86% and -12.22%, respectively, from the preceding year.
Any recent changes to analyst estimates for American Woodmark should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.07% increase. American Woodmark is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, American Woodmark is presently trading at a Forward P/E ratio of 9.1. This indicates a discount in contrast to its industry's Forward P/E of 12.47.
It's also important to note that AMWD currently trades at a PEG ratio of 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Furniture industry held an average PEG ratio of 1.02.
The Furniture industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
