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American Woodmark (AMWD) Gains But Lags Market: What You Should Know

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American Woodmark (AMWD - Free Report) closed the most recent trading day at $75.48, moving +0.13% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.61%.

Heading into today, shares of the cabinet maker had gained 6.85% over the past month, outpacing the Consumer Discretionary sector's gain of 3.43% and the S&P 500's gain of 4.86% in that time.

Investors will be hoping for strength from American Woodmark as it approaches its next earnings release. In that report, analysts expect American Woodmark to post earnings of $2.10 per share. This would mark year-over-year growth of 22.81%. Meanwhile, our latest consensus estimate is calling for revenue of $484.65 million, down 10.73% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.53 per share and revenue of $1.83 billion, which would represent changes of -14.3% and -11.22%, respectively, from the prior year.

Any recent changes to analyst estimates for American Woodmark should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. American Woodmark is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that American Woodmark has a Forward P/E ratio of 11.54 right now. Its industry sports an average Forward P/E of 11.54, so we one might conclude that American Woodmark is trading at a no noticeable deviation comparatively.

It is also worth noting that AMWD currently has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMWD's industry had an average PEG ratio of 1.03 as of yesterday's close.

The Furniture industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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