American Woodmark Corporation (AMWD) is slated to release fourth-quarter fiscal 2024 results on May 23, after market close.In the last reported quarter, the company’s earnings per share (EPS) and net sales surpassed the Zacks Consensus Estimate by 46.9% and 15.1%, respectively. On a year-over-year basis, revenues decreased 12.2%, but adjusted EPS increased 13.7%.American Woodmark’s bottom line topped the consensus mark in the trailing four quarters, an average surprise being 41.3%.Trend in Estimate Revision ...

Company Overview - American Woodmark (AMWD) is currently rated as a 1 (Strong Buy) by Zacks, with an A grade for Value [2] - The stock has a Forward P/E ratio of 9.83, significantly lower than the industry average of 13.66 [2] - Over the past 52 weeks, AMWD's Forward P/E has fluctuated between a high of 11.88 and a low of 7.28, with a median of 10.66 [2] Valuation Metrics - AMWD has a Price-to-Book (P/B) ratio of 1.60, which is attractive compared to the industry's average P/B of 3.45 [2] - The P/B ratio for AMWD has ranged from a high of 1.81 to a low of 0.93 over the past year, with a median of 1.42 [2] - The Price-to-Cash Flow (P/CF) ratio for AMWD stands at 6.95, compared to the industry's average P/CF of 12.14 [3] - AMWD's P/CF has varied between a high of 7.87 and a low of 4.36 over the past year, with a median of 6.36 [3] Investment Outlook - The combination of AMWD's strong valuation metrics suggests that the stock is likely undervalued at present [3] - Considering the strength of its earnings outlook, AMWD is positioned as an impressive value stock currently [3]

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 ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors typically do not time the market, which can lead to risks if stocks lose momentum after their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving stocks is challenging, as they may become expensive with limited upside [1] Group 2: American Woodmark (AMWD) Analysis - AMWD has shown a four-week price change of 6%, indicating growing investor interest [2] - Over the past 12 weeks, AMWD's stock gained 12.4%, demonstrating its ability to deliver positive returns over a longer timeframe [3] - The stock has a beta of 1.73, suggesting it moves 73% higher than the market in either direction, indicating fast-paced momentum [3] Group 3: Earnings Estimates and Valuation - AMWD has a Momentum Score of B, suggesting it is a favorable time to invest [3] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [4] - AMWD is trading at a Price-to-Sales ratio of 0.86, indicating it is relatively cheap at present [4] Group 4: Additional Investment Opportunities - Besides AMWD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which could be considered for investment [5] - The Zacks Premium Screens offer over 45 strategically created options to help identify potential winning stocks [5]

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]

Core Insights - American Woodmark (AMWD) is currently rated as a 1 (Strong Buy) by Zacks, indicating a stronger earnings outlook compared to WillScot (WSC), which holds a 3 (Hold) rating [1] - AMWD is identified as a superior value option based on various valuation metrics, including P/E and PEG ratios [3] Valuation Metrics - AMWD has a forward P/E ratio of 11.73, while WSC's forward P/E ratio is significantly higher at 22.11 [2] - The PEG ratio for AMWD is 0.90, indicating better value relative to its expected earnings growth compared to WSC's PEG ratio of 1.01 [2] - AMWD's P/B ratio stands at 1.81, contrasting with WSC's much higher P/B ratio of 7.03, further supporting AMWD's valuation advantage [3] Value Grades - AMWD has received a Value grade of A, while WSC has a Value grade of C, reflecting AMWD's stronger position in terms of valuation metrics [3]

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]