Acuity Brands Inc (AYI) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Acuity Brands (AYI)? Shares have been on the move with the stock up 11.1% over the past month. The stock hit a new 52-week high of $339.34 in the previous session. Acuity Brands has gained 15.3% since the start of the year compared to the 20.1% move for the Zacks Construction sector and the 61.1% return for the Zacks Building Products - Lighting industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 8, 2025, Acuity Brands reported EPS of $3.97 versus consensus estimate of $3.89 while it missed the consensus revenue estimate by 0.04%.For the current fiscal year, Acuity Brands is expected to post earnings of $16.85 per share on $4.41 billion in revenues. This represents an 8.35% change in EPS on a 14.68% change in revenues. For the next fiscal year, the company is expected to earn $18.21 per share on $4.86 billion in revenues. This represents a year-over-year change of 8.02% and 10.39%, respectively.Valuation MetricsAcuity Brands may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Acuity Brands has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 20X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.5X. On a trailing cash flow basis, the stock currently trades at 19X versus its peer group's average of 17.8X. Additionally, the stock has a PEG ratio of 2. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Acuity Brands currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Acuity Brands fits the bill. Thus, it seems as though Acuity Brands shares could have a bit more room to run in the near term.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acuity Brands Inc (AYI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks