Acuity Brands Inc (AYI) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Acuity Brands has shown significant stock performance, with a 14.9% increase over the past month and a 48.7% rise since the beginning of the year, outperforming both the Zacks Construction sector and the Zacks Building Products - Lighting industry [1] Group 1: Stock Performance - The stock reached a new 52-week high of $312.2 in the previous session [1] - Year-to-date, Acuity Brands has outperformed the Zacks Construction sector, which increased by 15.5%, and the Zacks Building Products - Lighting industry, which rose by 45.2% [1] Group 2: Earnings Performance - Acuity Brands has consistently exceeded earnings expectations, not missing the consensus estimate in the last four quarters [2] - In the latest earnings report on October 1, 2024, the company reported an EPS of $4.3, surpassing the consensus estimate of $4.19, and beat the revenue estimate by 2.32% [2] - For the current fiscal year, the expected earnings are $16.66 per share on revenues of $4 billion, reflecting a 7.07% change in EPS and a 4.18% change in revenues [2] - For the next fiscal year, projected earnings are $17.95 per share on $4.21 billion in revenues, indicating year-over-year changes of 7.73% and 5.15%, respectively [2] Group 3: Valuation Metrics - Acuity Brands trades at 18.3X current fiscal year EPS estimates, slightly below the peer industry average of 18.5X [4] - On a trailing cash flow basis, the stock trades at 17.2X compared to the peer group's average of 15.5X [4] - The stock has a PEG ratio of 1.83, which does not place it among the top echelon of stocks from a value perspective [4] Group 4: Zacks Rank - Acuity Brands holds a Zacks Rank of 2 (Buy), attributed to rising earnings estimates [5] - The company meets the criteria for selection, as it has a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for future growth [5]