Investors in The AZEK Company Inc. (AZEK) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 20, 2025 $25.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...

The AZEK Company Inc. (AZEK) recently beat on earnings and raised full year guidance. This Zacks Rank #1 (Strong Buy) is expected to grow revenue 8.3% this year.The AZEK Company designs and manufactures low maintenance and environmentally sustainable outdoor living products including TimberTech Decking and Railing, Versatex and AZEK Trim, and StruXure pergolas.Its products are made from up to 85% recycled material and primarily replace wood on the outside of homes.Headquartered in Chicago, it operates manuf ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyon ...

Company Overview - The AZEK Company (NYSE: AZEK) is experiencing strong double-digit growth in its residential segment as it enters the first quarter of FY25, driven by healthy demand for its products and robust sell-through growth [1] Demand Environment - The demand environment for AZEK's products remains favorable, contributing to the company's positive performance in the residential segment [1]

The AZEK Company (AZEK) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, AZEK broke through the 50-day moving average, which suggests a short-term bullish trend.The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more importan ...

Efficiency level measures a company’s capability to transform available input into output and is often considered an important parameter for gauging its potential to make profits.A company with a high efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance.However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks.To that end, Brinker ...

The AZEK Company (NYSE: AZEK ) has slackened growth in recent years due to unprecedented weakness in the Repair & Remodel (R&R) market. Under the assumption of a flat R&R market, the management projects 5%-7% revenue growth for Fiscal YearAnalyst’s Disclosure: I/we have a beneficial long position in the shares of AZEK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Al ...

Core Viewpoint - The AZEK Company is identified as a promising growth stock due to its strong earnings growth, cash flow growth, and positive earnings estimate revisions, positioning it well for outperformance in the market [2][9]. Earnings Growth - The historical EPS growth rate for The AZEK Company is 4.1%, but projected EPS growth for this year is expected to be 18.3%, surpassing the industry average of 15.7% [4]. Cash Flow Growth - The AZEK Company has a year-over-year cash flow growth of 25.6%, which is higher than many peers and compares favorably to the industry average of 25% [5]. - The company's annualized cash flow growth rate over the past 3-5 years is 32.7%, significantly above the industry average of 16.6% [6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for The AZEK Company, with the Zacks Consensus Estimate for the current year increasing by 0.2% over the past month [7].

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $285 million for Q1 2025, reflecting a year-over-year increase driven by double-digit sell-through growth and channel expansion [29][30] - Adjusted EBITDA for Q1 increased by $11 million or 20% year-over-year to $66 million, with an adjusted EBITDA margin of 23.1% [32][34] - Net income for Q1 decreased by $7 million year-over-year to $18 million, primarily due to the prior year's gain from the Vycom divestiture [32][33] Business Line Data and Key Metrics Changes - The residential segment net sales were $272 million, up 22% year-over-year, with adjusted EBITDA for the segment increasing by 24% to $64 million [34] - The commercial segment net sales were $13 million, down 23% year-over-year, primarily due to the Vycom divestiture and weaker demand in the Scranton Products business [35] Market Data and Key Metrics Changes - The company ended the quarter with channel inventory levels conservatively below historical averages, down roughly 15% from historical average days on hand [25][17] - Positive demand signals were observed from digital metrics and contractor surveys, indicating project backlogs in the six to seven weeks range [16][25] Company Strategy and Development Direction - The company is focused on wood conversion, product innovation, and channel expansion, with new product launches expected to address a wider range of price points and consumer needs [10][18] - Investments in recycling capabilities were highlighted, including the acquisition of a regional PVC and polyethylene recycling operation in Indiana [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market dynamics and delivering strong financial performance, despite uncertainties in the broader housing and repair markets [46] - The fiscal 2025 outlook was raised modestly, with expectations for residential segment net sales growth in the range of 6% to 8% year-over-year [18][39] Other Important Information - The company plans to continue investing in its business, both organically and inorganically, with a capital expenditure range of $85 million to $95 million for fiscal 2025 [42] - The company expects a GAAP tax rate for the full year between 25% to 26% [43] Q&A Session Summary Question: Can you discuss the demand and sell-through growth? - Management indicated that while sell-through was up double-digits in Q1, the annual outlook still implies mid-single-digit sell-through for the year due to conservative market growth assumptions [49][51] Question: What is the impact of new product investments? - New product investments are expected to create some inefficiencies initially, but revenue is anticipated to ramp up as products are launched and inventory is staged [53][55] Question: How does the acquisition impact recycling capacity? - The recent acquisition adds new technology and additional recycling sourcing streams, enhancing the company's ability to convert recycled materials internally [61][63] Question: What is the outlook for share repurchases? - The company plans to be opportunistic with share repurchases, with expectations that cash generation will improve in the back half of the year [131][133] Question: How is the company addressing market share gains? - Management noted that the company is expanding its position in the pro channel and launching new products to capture a larger share of the market [67][68]