The AZEK Company Inc. (AZEK) Is Worth Investing In

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The AZEK Company Inc. (NYSE:AZEK) concluded the trading at $22.08 on Thursday, April 28 with a rise of 5.60% from its closing price on previous day.

Taking a look at stock we notice that its last check on previous day was $20.91 with its price kept floating in the range of $20.55 and $22.17 on the day. Company’s P/E ratio for the trailing 12 months is 34.72. Considering stock’s 52-week price range provides that AZEK hit a high price of $51.32 and saw its price falling to a low level of $20.61 during that period. Over a period of past 1-month, stock came subtracting -19.39% in its value.

With its current market valuation of $3.46 billion, The AZEK Company Inc. is set to declare its quarterly results on Feb 09, 2022 – Feb 14, 2022. Analysts are in estimates of $0.17 per share for company’s earnings in the current quarter and are expecting its annual EPS growth moving up to $1.15 for 2022 with estimates of that growing to $1.35 in next year. These estimates are suggesting current year growth of 17.30% for EPS and 17.40% growth next year.

Analysts watching the company’s growth closely have provided estimates for its revenue growth with an average revenue estimate of $255.69 million. They suggested that in the process company could generate revenue of as low as $252.9 million which could climb up to $263 million to hit a high. In keeping analyst consensus estimate with, company is forecasted to be making an annual revenue of $1.37 billion in 2022, which will be 16.00% more from revenue generated by the company last year.

In last 7 days, analysts came adjusting their opinions about stock’s EPS with 1 upward and no downward revisions, an indication which could give clearer idea about the company’s short term price movement. In contrast, when we review AZEK stock’s current outlook then short term indicators are assigning it an average of 100% Sell, while medium term indicators are categorizing the stock at an average of 100% Sell. Long term indicators are suggesting an average of 100% Sell for it.

According to ratings assigned by 19 analysts at the scale of 1 to 5 with 1.00 representing a strong buy and 5.00 suggesting a strong sell; 2 of them are recommending The AZEK Company Inc. (AZEK) as a Hold, while 15 are in view that stock is a Buy. Recommendation by 0 analysts for the stock is an Underweight while number of those analysts who rated the stock as an Overweight is 2, whereas 0 of them are considering the stock as a Sell. When taken as whole, stock gets a rating of Overweight and that encourages the investors to exploit the opportunity and build their stake up in the company.

Digging deeper we become aware of the PEG ratio of the AZEK stock which is currently positioned at 1.51. It further provides that stock’s current price level is -4.02% away from its 20-day simple moving average and is -13.49% off its SMA50. Its relative strength index (RSI) for 14-periods is oscillating at 42.70 while volatility remained at 6.31% over the past week which changes to 5.87% when measuring it over the past month. Average true range or ATR is currently at 1.38.

In comparing The AZEK Company Inc. (AZEK)’s stock with other industry players reveals that stock’s current price change of 5.60% and that of -55.05% over the past 12 months is in competing position with that of Trex Company Inc. (TREX) which saw its stock price raised by 7.26% in the last trading and went through a decrease of -44.03% in past 12-month trading. Industry’s another major player Fortune Brands Home & Security Inc. (FBHS) has rise 3.87% up in previous session, but over the past year has faced a fall of -27.53%, while Builders FirstSource Inc. (BLDR) was also up 5.88% however its price remained floating in the green at 28.02% over the same period. The AZEK Company Inc. has a P/E ratio of 34.72 against that of Trex Company Inc.’s 33.93 while Fortune Brands Home & Security Inc. is showing 13.74 for the same. On the other hand, the S&P 500 Index was up 2.47% in the last trading session while the Dow Jones Industrial closed the session higher at 1.85%.

Having a second look at The AZEK Company Inc. (NYSE:AZEK) provides that stock’s average daily trading volume for 3 months was 2.20 million, while it jumped to 2.09 million when we calculate an average volume for past 10 days. Number of outstanding shares of the stock stood at 154.41 million.

The percentage of outstanding shares held by the insiders is 1.80% while it is 98.09% for the institutional holders. The figures also indicate that as of Dec 30, 2021, number of stock’s short shares was 2.83 million which implies a short ratio of 2.56. This shows up a 1.83% of Short Interest in company’s outstanding shares on the day. In December the standing of shares short improved as it was 2.74 million in the previous month. Subtraction of -52.25% by stock’s current price to its year-to-date value in last trading session is likely to be increasing investors’ interest in the stock as it is hinting an extended uptrend.