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].

The market expects Armstrong World Industries (AWI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected t ...