Core Insights - Acuity (AYI) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates by an average of 8.87% in the last two quarters [1][5]. Earnings Performance - For the most recent quarter, Acuity reported earnings of $4.42 per share, missing the expected $5.12 per share by 15.84%. In the previous quarter, it reported $3.73 per share against an estimate of $3.66 per share, resulting in a surprise of 1.91% [2]. Earnings Estimates and Predictions - Recent estimates for Acuity have been trending upward, with a positive Earnings ESP of +6.69%, indicating increased analyst optimism regarding the company's earnings prospects. This is coupled with a Zacks Rank of 2 (Buy), suggesting a strong possibility of another earnings beat [5][8]. Earnings ESP and Consensus - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the premise that analysts revising their estimates close to the earnings release have the most current information [7]. Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6].

Core Insights - Acuity (AYI) is currently positioned as a more favorable investment compared to Amplitude, Inc. (AMPL) based on Zacks Rank and valuation metrics [3][6] Valuation Metrics - AYI has a forward P/E ratio of 17.77, significantly lower than AMPL's forward P/E of 176.15, indicating that AYI may be undervalued [5] - AYI's PEG ratio stands at 1.78, while AMPL's PEG ratio is much higher at 4.56, suggesting AYI has a better balance between price and expected earnings growth [5] - AYI's P/B ratio is 4.02, slightly lower than AMPL's P/B of 4.05, which reflects a more favorable market value compared to book value [6] Zacks Rank and Value Grades - AYI holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while AMPL has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings forecast [3] - AYI has been assigned a Value grade of B, whereas AMPL has received a Value grade of F, highlighting AYI's stronger position in terms of value investing metrics [6]

Core Viewpoint - Acuity Inc. is set to release its fourth-quarter earnings results on October 1, with expectations of increased earnings and revenue compared to the previous year [1]. Financial Performance - Analysts predict Acuity will report earnings of $4.84 per share for the fourth quarter, an increase from $4.30 per share in the same period last year [1]. - The company is projected to generate quarterly revenue of $1.23 billion, up from $1.03 billion a year earlier [1]. - Acuity reported better-than-expected third-quarter financial results on June 26 [1]. Stock Performance - Acuity's shares rose by 0.1% to close at $339.11 on Monday [2]. Analyst Ratings - Baird analyst Timothy Wojs maintained a Neutral rating and raised the price target from $335 to $360 [4]. - Wells Fargo analyst Joseph O'Dea upgraded the stock from Equal-Weight to Overweight and increased the price target from $320 to $380 [4]. - Oppenheimer analyst Christopher Glynn maintained an Outperform rating and raised the price target from $370 to $380 [4].

Core Insights - Acuity Brands, Inc. is a leading provider in the lighting and building management solutions sector, particularly noted for its Intelligent Spaces segment, with a quarterly earnings release scheduled for October 1, 2025 [1] - Analysts project a 7% year-over-year increase in earnings per share (EPS) to $4.60 and a 16.8% rise in revenue to approximately $1.23 billion, driven by strong backlog conversion and new product innovations [2][6] - The company has consistently outperformed expectations, with adjusted earnings exceeding the Zacks Consensus Estimate by 15.8% in the previous quarter, alongside a 21.7% year-over-year revenue increase [3][6] Financial Performance - Acuity Brands reported a 23.4% year-over-year increase in adjusted earnings in the previous quarter, demonstrating strong operational capabilities [3] - The company's revenue outperformed expectations by 3%, indicating robust market performance [3] Challenges and Resilience - Acuity faces challenges such as tariffs, shifts in demand, and exposure to China through its Quality Systems Corporation, which could impact margins [4][6] - The company maintains a moderate debt-to-equity ratio of 0.42 and a strong current ratio of 1.99, suggesting it is well-positioned to manage potential financial pressures [4][6] Valuation Metrics - Acuity's valuation metrics include a P/E ratio of 26.06 and a price-to-sales ratio of 2.49, reflecting market confidence in its earnings and revenue potential [5] - The enterprise value to sales ratio stands at 2.66, with an earnings yield of 3.84%, further indicating the company's financial health [5]

Core Insights - Investors in the Technology Services sector may consider Acuity (AYI) and Amadeus IT Group SA Unsponsored ADR (AMADY) as potential stocks for value investment [1] Valuation Metrics - Acuity (AYI) has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Amadeus IT Group SA (AMADY), which has a Zacks Rank of 3 (Hold) [3] - AYI's forward P/E ratio is 17.77, while AMADY's forward P/E is 21.49, suggesting AYI may be undervalued relative to AMADY [5] - AYI has a PEG ratio of 1.78, compared to AMADY's PEG ratio of 3.53, indicating AYI's expected earnings growth is more favorable [5] - AYI's P/B ratio is 4.02, while AMADY's P/B ratio is 6, further supporting AYI's valuation attractiveness [6] - AYI has a Value grade of B, while AMADY has a Value grade of C, reflecting AYI's superior valuation metrics [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, AYI is positioned as the superior option for value investors compared to AMADY [7]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow for sustainable growth [5] Momentum Score - The Momentum Score helps investors capitalize on price or earnings trends, utilizing factors like one-week price change and monthly earnings estimate changes [6] VGM Score - The VGM Score combines the three Style Scores to identify companies with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks averaging a +23.64% annual return since 1988, significantly outperforming the S&P 500 [8][9] Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while stocks with a 3 rank should also have high Style Scores for potential upside [11][12] Company Spotlight: Acuity, Inc. - Acuity, Inc., based in Atlanta, GA, is the parent company of Acuity Brands Lighting, manufacturing lighting fixtures and related components for various applications [13] - Acuity holds a Zacks Rank of 2 (Buy) with a VGM Score of B, and a Growth Style Score of B, indicating a projected year-over-year earnings growth of 12.5% for the current fiscal year [14] - The Zacks Consensus Estimate for Acuity's earnings has increased by $0.10 to $17.51 per share, with an average earnings surprise of +5.6% [14][15]

Group 1 - The upcoming report from Acuity (AYI) is expected to reveal quarterly earnings of $4.60 per share, indicating an increase of 7% compared to the year-ago period [1] - Analysts forecast revenues of $1.21 billion, representing an increase of 16.8% year over year [1] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, reflecting analysts' reassessment of their initial estimates [1] Group 2 - Prior to earnings announcements, revisions to earnings estimates are crucial indicators for predicting potential investor actions regarding the stock [2] - Empirical research shows a robust correlation between trends in earnings estimate revision and short-term price performance of a stock [2] Group 3 - Analysts estimate 'Net Sales- Acuity Intelligent Spaces' at $260.99 million, suggesting a change of +211.1% year over year [4] - 'Net Sales- Acuity Brands Lighting (ABL)' is projected to reach $952.68 million, indicating a change of -0.2% year over year [4] Group 4 - 'Adjusted operating profit- Acuity Intelligent Spaces' is expected to be $45.89 million, compared to $21.50 million from the year-ago period [5] - The consensus for 'Adjusted operating profit- Acuity Brands Lighting' is $172.54 million, slightly above the $171.90 million reported in the same quarter last year [5] Group 5 - Over the past month, shares of Acuity have returned +1.5% versus the Zacks S&P 500 composite's +2.7% change [5] - AYI currently carries a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Group 1 - Acuity Brands' stock is showing strong performance, currently priced at $347.90 with an increase of $8.83 or 2.6% [1] - The stock has formed a three-weeks-tight pattern, indicating a potential entry point at $348.62, with support at the 21-day line [1] - Acuity Brands has a Composite Rating of 95 out of 99 and ranks 30 out of 197 in its industry group, highlighting its strong market position [1] Group 2 - The overall market is experiencing a rise, with small-cap stocks also showing significant gains following recent breakouts [2] - Acuity Brands is noted for its rising relative strength, having achieved an RS rating over 90, placing it in an elite category of stocks [4] - The company is approaching key technical benchmarks, which could indicate further upward momentum in its stock price [4]

Core Viewpoint - Acuity Inc. is set to release its fiscal 2025 fourth-quarter and full-year results on October 1, 2025, with a conference call led by CEO Neil Ashe [1]. Company Overview - Acuity Inc. (NYSE: AYI) is a leading industrial technology company focused on solving problems related to spaces, light, and more through its two business segments: Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS) [3]. - The company emphasizes the development of innovative products and services, including lighting, lighting controls, building management solutions, and an audio, video, and control platform [4]. - Acuity Inc. operates globally, with a presence in North America, Europe, and Asia, supported by approximately 13,000 associates [5].

Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score assesses a company's financial strength and future outlook based on projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price or earnings trends, utilizing factors like one-week price change and monthly earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in portfolio creation, with 1 (Strong Buy) stocks averaging a +23.75% annual return since 1988, outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential to use Style Scores to narrow down choices [9] Stock to Watch: Acuity, Inc. (AYI) - Acuity, Inc. is headquartered in Atlanta, GA, and manufactures lighting fixtures and related components [12] - AYI holds a 3 (Hold) Zacks Rank with a VGM Score of A and a Value Style Score of B, featuring a forward P/E ratio of 17.5 [13] - Recent earnings estimates for fiscal 2025 have been revised higher, with the Zacks Consensus Estimate increasing by $0.38 to $17.41 per share, and an average earnings surprise of +5.6% [13] - With a solid Zacks Rank and strong Value and VGM Style Scores, AYI is recommended for investors [14]