U.S. Markets closed

Bear of the Day: AZZ (AZZ)

David Bartosiak
Is Buckeye Partners (BPL) a great pick from the value investor's perspective right now? Read on to know more.

The best stocks are often found in the strongest industries. One way to measure the strength of an industry is to check out where it hits on the Zacks Industry Rank. Our Zacks Industry Rank breaks down the market into 255 different industries and compares them with one another. Industries made up of stocks with the strongest earnings trends rise to the top. On the flipside, those in industries experiencing shrinking earnings estimates will find themselves near the bottom of the pack. Today’s Bear of the Day is in one of those industries near the bottom of our Zacks Industry Rank.

Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) AZZ Inc (AZZ). AZZ Inc. provides galvanizing and metal coating services, welding solutions, specialty electrical equipment, and highly engineered services to the power generation, transmission, distribution, refining, and industrial markets. The company operates through two segments, Energy Segment and Metal Coatings. As of February 28, 2018, the company operated 45 metal coating plants located in various locations in the United States and Canada. That means AZZ is in the Manufacturing – Electronics Industry which ranks in the Bottom 28% of our Zacks Industry Rank.

The reason for the unfavorable Zacks Rank #5 (Strong Sell) lies in the series of earnings estimate revisions to the downside recently. Over the last thirty days, analysts have cut their expectations for the current quarter, next quarter, current year and next year. The bearish sentiment has dropped the Zacks Consensus Estimate for the current year from $2.20 to $2.03 while next year’s number has been slashed from $3.05 to $2.52.

Analysts looking for other stocks within the same industry have a few Zacks Rank #2 (Buy) stocks to chose from. Pioneer Power Solutions (PPSI), Rexnord Corp (RXN) and UQM Technologies (UQM) are all Zacks Rank #2 (Buy) stocks.

Zacks' Best Stock-Picking Strategy

It's hard to believe, even for us at Zacks. But from 2000-2018, while the market gained +4.8% per year, our top stock-picking strategy averaged +54.3% per year.

How has that screen done lately? From 2017-2018, it sextupled the market's +15.8% gain with a soaring +98.3% return.

Free – See the Stocks It Turned Up for Today >>

 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
UQM TECHNOLOGIES INC (UQM) : Free Stock Analysis Report
 
Rexnord Corporation (RXN) : Free Stock Analysis Report
 
Pioneer Power Solutions, Inc. (PPSI) : Free Stock Analysis Report
 
AZZ Inc. (AZZ) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research