Here's Why You Should Buy Armstrong World (AWI) Stock Now
Zacks Investment Research | Nov 15, 2017 09:54PM ET
Armstrong World Industries, Inc. (NYSE:AWI) continues to benefit from repair, new construction activity, improvement in average unit value (AUV) in the Americas, recent acquisitions and innovation in product pipeline.
Of late, share price of this stock has also been rising. If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry he momentum ahead.
Strong Q3, Upbeat Guidance
Armstrong World posted adjusted earnings of 86 cents per share in third-quarter 2017, which increased 14.7% year over year. The company also raised its 2017 adjusted earnings per share guidance range to $2.80-$2.90 from $2.65-$2.75, projected earlier. The mid-point of its guidance depicts 24% growth year over year.
Based on strong October sales that has benefited from pent up demand following the recent hurricanes, a strong order backlog and improved construction market, the company maintained 2017 sales guidance. Year-over-year sales growth is expected in the 6-9% range, translating to total sales of $1.31-$1.34 billion.
Return on Assets (ROA)
Armstrong World currently has a ROA of 7.9% while the industry's ROE is 3.2%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Price Performance
The company outperformed the Zacks Investment Research
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