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Quanex Building Products (NX) Gains But Lags Market: What You Should Know

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In the latest trading session, Quanex Building Products (NX) closed at $23.62, marking a +0.17% move from the previous day. The stock lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the housing materials maker had gained 9.57% over the past month. This has lagged the Construction sector's gain of 9.64% and outpaced the S&P 500's gain of 7.25% in that time.

Quanex Building Products will be looking to display strength as it nears its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $301.1 million, up 7.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.35 per share and revenue of $1.19 billion, which would represent changes of +34.29% and +11.02%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Quanex Building Products. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 21.76% higher within the past month. Quanex Building Products is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Quanex Building Products currently has a Forward P/E ratio of 10.03. This represents a discount compared to its industry's average Forward P/E of 12.94.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% 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.

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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