Bull of the Day: The AZEK Company (AZEK)

The AZEK Company Inc. AZEK recently beat on earnings and raised full year guidance. This Zacks Rank #1 (Strong Buy) is expected to grow revenue 8.3% this year.The AZEK Company designs and manufactures low maintenance and environmentally sustainable outdoor living products including TimberTech Decking and Railing, Versatex and AZEK Trim, and StruXure pergolas.Its products are made from up to 85% recycled material and primarily replace wood on the outside of homes.Headquartered in Chicago, it operates manufacturing and recycling facilities in Ohio, Pennsylvania, Idaho, Georgia, Nevada, New Jersey, Michigan, Minnesota, and Texas.Another Earnings Beat by The AZEK Company in the Fiscal First Quarter 2025On Feb 4, 2025, The AZEK Company reported its fiscal first quarter 2025 results and beat the Zacks Consensus by $0.03. Earnings were $0.17 versus the consensus of $0.14.It was the 9th earnings surprise in a row.Net sales rose 19%, or $45 million, to $285.4 million led by Residential Sales which rose 22% year-over-year.Residential was boosted by double digit sell-through growth in the quarter and expanded market presence across the Deck, Rail & Accessories and Exteriors categories.TimberTech remains the cornerstone of the business.However, adjusted Gross Profit Margin declined year-over-year by 190 basis points to 37.4% compared to 39.3% in the same quarter in 2023.The AZEK Company Raised Full Year Sales GuidanceThe AZEK Company is bullish on the rest of fiscal 2025 as it has had new product launches which are generating excitement from their contractor and dealer partners.These include TimberTech Fulton Rail, TimberTech Reliance Rail, Versatex XCEED siding and TrimLogic, an exterior trim product made with up to 95% recycled PVC material.The company raised its full year net sales guidance to a range of $1.52 to $1.55 billion from its previous guidance of $1.51 to $1.54 billion.Analysts Raise The AZEK Company’s Full Year Earnings EstimatesAnalysts are bullish too. 5 earnings estimates were revised higher in the last 30 days for fiscal 2025. That has pushed the Zacks Consensus up to $1.45.That is earnings growth of 20.8% because The AZEK Company made $1.20 in Fiscal 2024.Analysts are bullish about fiscal 2026 as well with 4 estimates being revised higher in the same period. That has pushed the Zacks Consensus up to $1.72, which is another 18.3% growth.You can see what it looks like on the 5-year price and consensus chart.Image Source: Zacks Investment ResearchAZEK Shares Outperform the Last 6 MonthsShares of the AZEK Company have been volatile in 2025, following the trends of the market. But over the last 6 months, it is still outperforming that of the Vanguard S&P 500 Index (VOO).Image Source: Zacks Investment ResearchThe AZEK Company is not a value stock. It trades with a forward price-to-earnings (P/E) ratio of 30.6. It has a Zacks Style Score of “F” which is the lowest Style Score you can have.The AZEK Company also doesn’t pay a dividend.But if you’re a growth investor looking for a company that is raising its guidance in 2025, The AZEK Company should be on your short list.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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 The AZEK Company Inc. (AZEK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks