Core Viewpoint - American Woodmark Corporation is positioned for potential upside despite recent revenue declines, supported by strong profitability metrics and a favorable market outlook [2][15]. Financial Performance - For the first nine months of the 2024 fiscal year, American Woodmark generated $1.39 billion in sales, a 12% decrease from $1.59 billion in the previous year [3]. - Remodeling sales dropped 13.8% year over year, with independent dealer and distributor channel sales down 10.3% and home center channel sales down 15.1% [3][4]. - Net income increased from $63.6 million to $89.4 million, driven by a rise in gross profit margin from 16.45% to 21.07% [4]. - Operating cash flow rose from $110.8 million to $187.4 million, while EBITDA grew from $175.1 million to $198.1 million [4][5]. Market Outlook - Management forecasts a low double-digit revenue decline for the 2024 fiscal year but expects EBITDA to be between $247 million and $253 million [6]. - The company aims to achieve over $350 million in EBITDA by 2028, capitalizing on a fragmented market and potential for acquisitions [11][15]. - The U.S. housing market is expected to recover, driven by years of underbuilding and increased repair and remodeling activities [4][6]. Competitive Positioning - American Woodmark has a market share of 15% in the new construction market, 24% in the home center market, and only 2% in the dealer market [13]. - The company is expanding its facilities to enhance production capacity and market reach, including recent expansions in North Carolina and Mexico [11][15]. - On a price to operating cash flow basis, American Woodmark is competitively priced compared to similar firms, with a valuation of 7.5 [7].

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is American Woodmark (AMWD) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.American Woodmark is one of 286 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #15 within the Zacks Sector Rank. Th ...

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The most recent trading session ended with American Woodmark (AMWD) standing at $100.01, reflecting a -1.62% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, added 0.11%.Coming into today, shares of the cabinet maker had lost 0.6% in the past month. In that same time, the Consumer Discretionary sector gained 0.59%, while the S&P 500 gained 3.32%.The upcoming earn ...

Economic Overview - Americans are experiencing increased personal income and consumer spending as inflation pressures ease, complicating the Federal Reserve's efforts to control inflation [1] - The Commerce Department reported a $66.5 billion (0.3%) increase in personal income and a $145.5 billion (0.8%) rise in consumer spending in February [1] - The personal saving rate was recorded at 3.6% with total personal savings at $745.7 billion in February [1] Inflation and Federal Reserve Actions - The PCE price index rose 0.3% month over month in February, with core PCE also increasing by 0.3% [2] - Year-over-year, PCE increased by 2.5% and core PCE by 2.8% [2] - The Federal Reserve has maintained its benchmark policy rate at 5.25-5.5% since July 2023, after a series of rate hikes totaling 525 basis points since March 2022 [2] - The Fed is preparing to cut interest rates at least three times this year, which may boost consumer spending [2] Consumer Discretionary Stocks - Five consumer discretionary stocks have been identified with strong potential for 2024, all showing positive earnings estimate revisions [3] - Crocs, Inc. (CROX) has an expected earnings growth rate of 2.9% with a Zacks Rank 2 [3] - Interface, Inc. (TILE) has an expected earnings growth rate of 2% and a Zacks Rank 1, with a 32.5% improvement in earnings estimates [4] - Royal Caribbean Cruises Ltd. (RCL) is projected to have a 47.9% earnings growth rate and a Zacks Rank 1, with a 9.4% improvement in earnings estimates [4] - American Woodmark Corporation (AMWD) has an expected earnings growth rate of 14.4% and a Zacks Rank 1, with a 3% improvement in earnings estimates [5]

Investors with an interest in Furniture stocks have likely encountered both American Woodmark (AMWD) and WillScot (WSC) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Sty ...

Economic Overview - The U.S. economy expanded at an annualized pace of 3.3% in Q4 2023, with a total growth of 2.5% for the year [1] - The Federal Reserve maintained the benchmark overnight borrowing rate and indicated three quarter-percentage-point interest rate cuts by the end of 2023, marking the first cuts since March 2020 [1] Consumer Spending - Retail sales increased by 0.6% in February 2023, recovering from a 1.1% decline in January, with spending rising in seven of the past ten months [2] - The resilience in consumer spending is attributed to a strong labor market and rising average hourly earnings [2] Leading Economic Indicators - The Conference Board's leading indicator advanced by 0.1% in February 2023, marking its first increase since February 2022, suggesting economic improvement [3] Investment Opportunities - The stock market is positioned for growth, with recommendations to invest in growth stocks such as: - American Woodmark (AMWD): Zacks Rank 1, Growth Score B, expected earnings growth rate of 14.4% [4] - Burlington Stores (BURL): Zacks Rank 1, Growth Score A, expected earnings growth rate of 22.1% [4] - Central Garden & Pet (CENT): Zacks Rank 1, Growth Score B, expected earnings growth rate of 10.6% [4] - DHI Group (DHX): Zacks Rank 1, Growth Score B, expected earnings growth rate of 80% [5] - Amazon.com (AMZN): Zacks Rank 2, Growth Score A, expected earnings growth rate of 40.7% [5]

Group 1 - American Woodmark (AMWD) has reached a significant support level and shows potential as a good investment from a technical perspective [1] - AMWD recently broke through the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average (SMA) is a popular tool among traders for assessing stock price trends and smoothing out fluctuations [1] Group 2 - AMWD has moved 6% higher over the last four weeks, suggesting it may be on the verge of another rally [1] - The company currently holds a Zacks Rank 1 (Strong Buy), indicating strong investor interest [1] - Positive earnings estimate revisions have occurred, with no estimates decreasing in the past two months and one estimate increasing [2]

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Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is American Woodmark (AMWD) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.American Woodmark is a member of the Consumer Discretionary sector. This group includes 292 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Secto ...