Yahoo Finance American Axle & Manufacturing (AXL) Stock Sinks As Market Gains: What You Should Know
American Axle & Manufacturing (AXL) closed at $10.32 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 0.03% gain on the day.
Heading into today, shares of the maker of auto parts had lost 7.59% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.22% and the S&P 500's gain of 2.12% in that time.
Investors will be hoping for strength from AXL as it approaches its next earnings release. In that report, analysts expect AXL to post earnings of $0.06 per share. This would mark year-over-year growth of 103.35%. Our most recent consensus estimate is calling for quarterly revenue of $1.24 billion, up 140.44% from the year-ago period.
AXL's full-year Zacks Consensus Estimates are calling for earnings of $1.48 per share and revenue of $5.53 billion. These results would represent year-over-year changes of +957.14% and +17.46%, respectively.
Investors should also note any recent changes to analyst estimates for AXL. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AXL is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, AXL currently has a Forward P/E ratio of 7.01. For comparison, its industry has an average Forward P/E of 12.86, which means AXL is trading at a discount to the group.
Investors should also note that AXL has a PEG ratio of 0.87 right now. 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. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.88 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 122, putting it in the top 49% 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.
To follow AXL in the coming trading sessions, be sure to utilize Zacks.com.
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American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
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