Returns Breakdown
| Return on Investment | 12.65 | |
| Return on Assets | 0.009474 | |
| Return on Equity | 5.26E-4 | |
| Return Capital | 0.0721 | |
| Return on Sales | 0.0621 |
Is AZZ Incorporated (USA Stocks:AZZ) outlook positive for August 2023?
 | By Aina Ster | Macroaxis Story |
AZZ Incorporated (NYSE: AZZ), a key player in the Heavy Electrical Equipment industry, has recently caught the attention of investors due to its current price volatility. With a Beta of 1.2919, the stock exhibits higher volatility than the market, presenting potential opportunities for investors. Despite its volatility, AZZ's strong fundamentals make it an attractive investment. The company has a PE Ratio of 18.39 and a PEG Ratio of 2.46, indicating a reasonable valuation relative to its earnings growth. The firm's EPS Estimate for the current quarter stands at $0.29, while the EPS Estimate for the current year is a robust $4.09. The Wall Street target price for AZZ is a staggering $58, suggesting a potential upside from the current price. The analyst overall consensus for AZZ is a 'Strong Buy', further bolstering the investment case for the stock. However, investors should also consider the short ratio of 3.79 and shares short of 303K, indicating some level of market skepticism. Despite the discontinued operations amounting to $12.8M, the company's solid performance and positive forecasts make AZZ a stock to watch. The Cash Flow Per Share of AZZ Incorporated is relatively stable at present, compared to the previous year. In 2022, AZZ Incorporated reported a Cash Flow Per Share of 3.67. The Revenue to Assets ratio is projected to increase to 0.83 in 2023, even though the Net Income Per Employee is expected to grow to 1.4K. The primary objective of this brief article is to analyze AZZ as an investment opportunity for August. We will examine why recent price movements of AZZ Incorporated suggest a potential rebound in August.
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Reviewed by Gabriel Shpitalnik
AZZ Incorporated has a performance score of 5 on a scale of 0 to 100. The company exhibits a Beta (market volatility) of 1.5316, indicating a somewhat significant risk compared to the market. To understand what this Beta means for AZZ, consider that as the market rises, the company is projected to outperform it. Conversely, if the market yields negative returns, AZZ Incorporated is likely to underperform.
While it's crucial to acknowledge AZZ Incorporated's historical returns, it's more beneficial to realistically assess the current trending patterns of the equity. The future performance of any stock can be forecasted by evaluating the business as a whole, including its past performance and all available fundamental and technical indicators.
By analyzing AZZ Incorporated's technical indicators, we can presently determine if the expected return of 0.13% will be sustainable in the future. Currently, AZZ Incorporated demonstrates a risk of 1.89%. Please verify AZZ Incorporated's Jensen Alpha and semi-variance to decide if AZZ Incorporated will continue to follow its price patterns.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as AZZ Incorporated. Your research has to be compared to or analyzed against AZZ Incorporated's peers to derive any actionable benefits. When done correctly, AZZ Incorporated's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in AZZ Incorporated.
A deeper look at AZZ
AZZ Incorporated's (USA Stocks:AZZ) current market performance presents an intriguing investment opportunity. With a 52-week high of 46.94 and a last price of 41.56, the stock shows potential for considerable growth. Its EPS estimate for the current year stands at 4.09, and for the next year, it is expected to rise to 3.92, indicating the company's profitability. However, the company's high Coefficient of Variation at 5.3K and a Standard Deviation of 1.92 suggest a higher level of risk, which investors should take into account. Despite a recent price change of -0.38, the company's potential upside of 2.95 and a PE Ratio of 18.39 signal a promising future for AZZ Incorporated.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as AZZ Incorporated. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for AZZ Incorporated
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of AZZ Incorporated's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is AZZ Incorporated's Liquidity
AZZ Incorporated financial leverage refers to using borrowed capital as a funding source to finance AZZ Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AZZ Incorporated financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AZZ Incorporated's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AZZ Incorporated's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AZZ Incorporated's total debt and its cash.
AZZ Incorporated Gross Profit
AZZ Incorporated Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing AZZ Incorporated previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show AZZ Incorporated Gross Profit growth over the last 10 years. Please check AZZ Incorporated's gross profit and other fundamental indicators for more details.
Breaking down AZZ Incorporated Indicators
AZZ Incorporated currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of -0.01. However, we advise investors to further question AZZ Incorporated expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AZZ Incorporated's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact AZZ Incorporated's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
AZZ Incorporated (NYSE:AZZ), a player in the Specialty Business Services industry, has been displaying notable price volatility, presenting potential opportunities for savvy investors. The company's current market capitalization stands at approximately $1.05 billion, with an EPS estimate for the current year at $4.09.The company's 52-week high and low are $46.94 and $29.81, respectively, indicating significant price movements within the year. AZZ's financial health is robust, with a current ratio of 1.88X, signifying its ability to meet short-term obligations. The company's net assets are worth an impressive $2.22 billion, and it has a healthy operating margin of 0.14%. The payout ratio is 0.281, indicating a commitment to returning profits to shareholders. Investors should also note the company's beta of 1.29, which suggests higher volatility compared to the market. Despite this, AZZ has managed a five-year return of 1.56%, which is a testament to its resilience. Additionally, the company's shares are largely held by institutions, at 90.59%, indicating strong confidence from professional investors. In conclusion, AZZ Incorporated's current price volatility, combined with its solid financials and institutional backing, presents a compelling case for investment consideration. .
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