雅虎香港財經 Bear Of The Day: American Woodmark (AMWD)
American Woodmark (AMWD) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings miss. The company is the third largest manufacture of kitchen and bath cabinets. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
American Woodmark Corp. engages in the manufacture and distribution of kitchen cabinets and vanities for the remodeling and new home construction markets. The company was founded by William F. Brandt, Jr., Richard Al Graber, Jeffrey S. Holcomb and Donald P. Mathias in 1980 and is headquartered in Winchester, VA.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of American Woodmark, I see three straight beats of the Zacks Consensus Estimate followed up by a miss. The most recent quarter was a miss with the company posting $1.75 when $1.70 was expected. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For ARW I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $9.20 to $8.31 over the last 60 days.
The next year has moved from $10.23 to $9.16 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
