AdvanSix (ASIX) closed the last trading day at $33.06, down -1.14% from the previous trading session. That move lagged the S&P 500’s 1.06% daily gain. Meanwhile, the Dow Jones gained 1.05% and the tech-heavy Nasdaq gained 0.4%.
As of today, shares of the polymer resin producer had lost 29.15% in the past month. At the same time, the basic materials sector lost 17.26%, while the S&P 500 lost 8.3%.
AdvanSix will look to show strength ahead of its next earnings release. On that day, AdvanSix is expected to post earnings of $1.74 per share, representing year-over-year growth of 13.73%. Our most recent consensus estimate calls for quarterly revenue of $557.5 million, up 27.38% from the prior year period.
For the full year, our Zacks consensus estimates call for earnings of $7.99 per share and revenue of $2.07 billion, which would represent swings of +66.11% and +22, 93%, respectively, compared to the previous year.
Investors might also notice recent changes in analyst estimates for AdvanSix. These revisions generally reflect the latest short-term trading trends, which may change frequently. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.
Our research shows that these estimate changes are directly correlated to short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection is down 4.65%. AdvanSix currently sports a Zacks rank of #3 (Hold).
Digging into the valuation, AdvanSix currently has a Forward P/E ratio of 4.18. This valuation marks a discount compared to the average Forward P/E of its sector of 13.79.
The Specialty Chemicals industry is part of the Basic Materials sector. This group has a Zacks industry ranking of 58, which places it in the top 23% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
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