Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Armstrong World Industries (AWI) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth [2] Group 2: Earnings Growth - Historical EPS growth rate for Armstrong World Industries is 15.5%, but projected EPS growth is expected to be 18.5% this year, significantly higher than the industry average of 7.4% [4] Group 3: Asset Utilization - Armstrong World Industries has an asset utilization ratio (sales-to-total-assets ratio) of 0.86, outperforming the industry average of 0.84, indicating better efficiency in generating sales [6] - The company's sales are projected to grow by 12.8% this year, compared to the industry average of 0.8% [6] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for Armstrong World Industries have been revised upward, with the Zacks Consensus Estimate increasing by 2.7% over the past month [8] Group 5: Investment Potential - Armstrong World Industries has earned a Growth Score of B and carries a Zacks Rank 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [10]

Core Viewpoint - Armstrong World Industries (AWI) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on a company's changing earnings picture, which is crucial for near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4][5]. Recent Performance of Armstrong World Industries - For the fiscal year ending December 2025, Armstrong World Industries is expected to earn $7.48 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.9% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Armstrong World Industries to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Armstrong World Industries (AWI) is expected to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1] Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $1.75 per share, reflecting an 8% increase year-over-year, and revenues are projected to be $403.73 million, up 10.6% from the previous year [3] - The stock price may rise if these key figures exceed expectations, while a miss could lead to a decline [2] Estimate Revisions - The consensus EPS estimate has been revised down by 0.91% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for AWI is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.71%, suggesting a bullish outlook from analysts [12] Earnings Surprise History - In the last reported quarter, AWI exceeded the expected earnings of $1.55 per share by delivering $1.66, resulting in a surprise of +7.10% [13] - The company has beaten consensus EPS estimates in the last four quarters [14] Additional Insights - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise [10] - Despite the potential for an earnings beat, other factors may influence stock movement, and it is essential to consider these alongside earnings expectations [15][17]