Why the Market Dipped But American Woodmark (AMWD) Gained Today
American Woodmark (AMWD) closed the most recent trading day at $94.28, moving +0.18% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.76%.
Shares of the cabinet maker have appreciated by 1.36% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.59% and the S&P 500's gain of 3.36%.
The investment community will be paying close attention to the earnings performance of American Woodmark in its upcoming release. The company is forecasted to report an EPS of $1.13, showcasing a 22.6% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $366.9 million, reflecting a 23.68% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.47 per share and revenue of $1.79 billion, indicating changes of +11.15% and -13.31%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for American Woodmark. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. American Woodmark is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that American Woodmark has a Forward P/E ratio of 11.11 right now. This denotes a discount relative to the industry's average Forward P/E of 15.39.
Investors should also note that AMWD has a PEG ratio of 0.85 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Furniture industry was having an average PEG ratio of 1.17.
The Furniture industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
American Woodmark Corporation (AMWD) : Free Stock Analysis Report
