In the latest trading session, American Axle & Manufacturing (AXL) closed at $14.53, marking a -1.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq gained 0.44%.
Heading into today, shares of the maker of auto parts had gained 5% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 1.71% and the S&P 500's gain of 2.91% in that time.
Wall Street will be looking for positivity from AXL as it approaches its next earnings report date. On that day, AXL is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 64.29%. Meanwhile, our latest consensus estimate is calling for revenue of $1.74 billion, down 6.6% from the prior-year quarter.
AXL's full-year Zacks Consensus Estimates are calling for earnings of $2.92 per share and revenue of $7.31 billion. These results would represent year-over-year changes of -10.98% and +0.54%, respectively.
Any recent changes to analyst estimates for AXL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.81% lower. AXL is currently a Zacks Rank #3 (Hold).
Investors should also note AXL's current valuation metrics, including its Forward P/E ratio of 5.04. Its industry sports an average Forward P/E of 9.64, so we one might conclude that AXL is trading at a discount comparatively.
Meanwhile, AXL's PEG ratio is currently 0.62. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 22% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report
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