Why American Woodmark (AMWD) Outpaced the Stock Market Today
In the latest trading session, American Woodmark (AMWD) closed at $75.10, marking a +1.87% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.39%, and the technology-dominated Nasdaq saw an increase of 1.35%.
The the stock of cabinet maker has fallen by 4.5% in the past month, leading the Consumer Discretionary sector's loss of 7.42% and the S&P 500's loss of 6.19%.
The upcoming earnings release of American Woodmark will be of great interest to investors. On that day, American Woodmark is projected to report earnings of $1.89 per share, which would represent a year-over-year decline of 15.63%. In the meantime, our current consensus estimate forecasts the revenue to be $464.76 million, indicating a 17.23% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.33 per share and a revenue of $1.85 billion, indicating changes of -3.81% and -10.58%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Woodmark. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 6.51% rise in the Zacks Consensus EPS estimate. As of now, American Woodmark holds a Zacks Rank of #1 (Strong Buy).
With respect to valuation, American Woodmark is currently being traded at a Forward P/E ratio of 10.06. This represents a discount compared to its industry's average Forward P/E of 13.25.
One should further note that AMWD currently holds a PEG ratio of 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AMWD's industry had an average PEG ratio of 0.97 as of yesterday's close.
The Furniture industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
