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The AZEK Company (AZEK) Increases Yet Falls Behind Market: What Investors Need to Know

In the latest market close, The AZEK Company (AZEK) reached $45, with a +0.63% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.

The the stock of company has fallen by 9.62% in the past month, lagging the Construction sector's loss of 5.9% and the S&P 500's loss of 3.97%.

The investment community will be closely monitoring the performance of The AZEK Company in its forthcoming earnings report. The company is scheduled to release its earnings on May 8, 2024. The company is forecasted to report an EPS of $0.38, showcasing a 111.11% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $414.7 million, indicating a 9.8% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.16 per share and a revenue of $1.42 billion, indicating changes of +56.76% and +3.77%, respectively, from the former year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for The AZEK Company. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 1.43% higher within the past month. Currently, The AZEK Company is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, The AZEK Company is currently being traded at a Forward P/E ratio of 38.55. This expresses a premium compared to the average Forward P/E of 27.97 of its industry.

Investors should also note that AZEK has a PEG ratio of 1.28 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Air Conditioner and Heating industry had an average PEG ratio of 1.76.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

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The AZEK Company Inc. (AZEK) : Free Stock Analysis Report

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