Quanex Building Products (NX) Dips More Than Broader Markets: What You Should Know
Quanex Building Products (NX) closed at $24.18 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the housing materials maker had gained 3.36% in the past month. In that same time, the Construction sector gained 2.58%, while the S&P 500 gained 4.59%.
Wall Street will be looking for positivity from Quanex Building Products as it approaches its next earnings report date. This is expected to be September 1, 2022. In that report, analysts expect Quanex Building Products to post earnings of $0.62 per share. This would mark year-over-year growth of 47.62%. Meanwhile, our latest consensus estimate is calling for revenue of $301.1 million, up 7.58% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.35 per share and revenue of $1.19 billion. These totals would mark changes of +34.29% and +11.02%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Quanex Building Products. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Quanex Building Products currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Quanex Building Products is holding a Forward P/E ratio of 10.47. For comparison, its industry has an average Forward P/E of 12.71, which means Quanex Building Products is trading at a discount to the group.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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