Quanex Building Products (NX) closed the most recent trading day at $24.77, moving +0.98% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the housing materials maker had gained 7.35% over the past month, lagging the Construction sector's gain of 10.28% and the S&P 500's gain of 8.06% in that time.
Quanex Building Products will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.62, up 47.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $301.1 million, up 7.58% from the year-ago period.
NX's full-year Zacks Consensus Estimates are calling for earnings of $2.35 per share and revenue of $1.19 billion. These results would represent year-over-year changes of +34.29% and +11.02%, respectively.
Investors might also notice recent changes to analyst estimates for Quanex Building Products. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Quanex Building Products is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Quanex Building Products's current valuation metrics, including its Forward P/E ratio of 10.44. Its industry sports an average Forward P/E of 12.98, so we one might conclude that Quanex Building Products is trading at a discount comparatively.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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