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American Woodmark (AMWD) Stock Sinks As Market Gains: Here's Why

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American Woodmark (AMWD - Free Report) ended the recent trading session at $89.22, demonstrating a -0.86% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 0.36%.

Coming into today, shares of the cabinet maker had lost 3.97% in the past month. In that same time, the Consumer Discretionary sector lost 0.13%, while the S&P 500 gained 2.4%.

Analysts and investors alike will be keeping a close eye on the performance of American Woodmark in its upcoming earnings disclosure. The company is expected to report EPS of $1.13, down 22.6% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $366.9 million, down 23.68% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.47 per share and a revenue of $1.79 billion, demonstrating changes of +11.15% and -13.31%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Woodmark. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, American Woodmark is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, American Woodmark is currently trading at a Forward P/E ratio of 10.62. This denotes a discount relative to the industry's average Forward P/E of 15.27.

It is also worth noting that AMWD currently has a PEG ratio of 0.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Furniture was holding an average PEG ratio of 1.12 at yesterday's closing price.

The Furniture industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 30, finds itself in the top 12% echelons 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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