Here's Why You Should Hold Apogee Stock In Your Portfolio Now
Zacks Investment Research | Jul 08, 2019 08:46AM ET
Fiscal 2020 has started on a good note for Apogee Enterprises, Inc. (NASDAQ:APOG) , with forecast-toppings earnings and revenues in first-quarter fiscal 2020. The stock is gaining on the back of solid bidding and order activity, robust backlog, and continued favorable outlook for the North America commercial construction market. However, reduced volumes due to project timing delays and rising costs might weigh on margins.
Below, we briefly analyze the company's potential growth drivers and possible headwinds.
Factors Favoring the Stock in Fiscal 2020
Stellar Q1 Results: Apogee delivered adjusted earnings per share of 58 cents in the fiscal first quarter, surpassing the Zacks Consensus Estimate of 53 cents. The company generated revenues of $355 million, which also comfortably beat the Zacks Consensus Estimate of $325 million.
Positive Growth Projections: The Zacks Consensus Estimate for earnings is currently pegged at $3.04 for fiscal 2020, indicating year-over-year growth of 2.7%. For fiscal 2021, the Zacks Consensus Estimate for earnings is pegged at $3.54, highlighting year-over-year growth of 16.3%.
Return on Assets (ROA): Apogee currently has a ROA of 7.6%, while the industry's ROA is 4.3%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Price Performance: Shares of the company have appreciated 11.2% over the past month compared with the Zacks Investment Research
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