AZZ Inc. (AZZ) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - AZZ has demonstrated strong stock performance, with an 11.5% increase over the past month and a 36.3% gain since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Manufacturing - Electronics industry [1][2]. Financial Performance - AZZ has a consistent record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters. In the latest earnings report on July 9, 2025, AZZ reported EPS of $1.78, surpassing the consensus estimate of $1.58, although it missed the revenue estimate by 3.64% [2]. - For the current fiscal year, AZZ is projected to achieve earnings of $6.01 per share on revenues of $1.68 billion, reflecting a 15.58% increase in EPS and a 6.19% increase in revenues. For the next fiscal year, earnings are expected to rise to $6.53 per share on revenues of $1.74 billion, indicating year-over-year changes of 8.65% and 4.05%, respectively [3]. Valuation Metrics - AZZ's current valuation metrics indicate that it trades at 18.6 times the current fiscal year EPS estimates, which is below the peer industry average of 24.3 times. On a trailing cash flow basis, it trades at 10.2 times compared to the peer group's average of 20.8 times, suggesting that the company may not be in the top tier from a value perspective [6]. Zacks Rank - AZZ holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, which positions it favorably for investors seeking stocks with strong potential. The combination of a Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B indicates that AZZ shares may have further upside potential in the near term [7].