American Woodmark (AMWD) Suffers a Larger Drop Than the General Market: Key Insights
The most recent trading session ended with American Woodmark (AMWD) standing at $65.75, reflecting a -0.5% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.48% loss on the day. On the other hand, the Dow registered a loss of 1.12%, and the technology-centric Nasdaq increased by 0.38%.
Prior to today's trading, shares of the cabinet maker had lost 13.76% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.79% and the S&P 500's loss of 2.65% in that time.
Investors will be eagerly watching for the performance of American Woodmark in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.77, signifying a 20.98% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $454.52 million, down 19.05% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.99 per share and a revenue of $1.81 billion, representing changes of +4.86% and -12.22%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for American Woodmark. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.07% upward. Currently, American Woodmark is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, American Woodmark is presently being traded at a Forward P/E ratio of 8.27. This expresses a discount compared to the average Forward P/E of 12.69 of its industry.
It's also important to note that AMWD currently trades at a PEG ratio of 0.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Furniture industry stood at 0.97 at the close of the market yesterday.
The Furniture industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons 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.
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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
