On Monday, Acuity Brands Inc. (NYSE:AYI) shares edged slightly higher ahead of its fiscal first-quarter 2022 results on Friday. The stock rocketed more than 77% last year, leaving little room for more upward movements.
However, analysts are optimistic about its upcoming quarterly report, predicting earnings to grow by more than 17% from the same quarter last year to $2.2, while revenue is expected to rise by about 11% to over $880 million.
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The Atlanta- GA-based lighting and building solutions provider has outperformed quarterly earnings expectations on several occasions over the last two years. Recently, analysts have bumped up their EPS estimates to as high as $2.45 per share, a clear indication of a potential surprise in the upcoming results.
Time to bet on growth?
From an investment perspective, Acuity Brands shares trade at reasonable trailing 12-month and forward P/E ratios of 25.35 and 17.40, respectively, making the stock an intriguing option for value investors.
In addition, analysts expect the company’s bottom line to grow by 33.50% this year, before rising at an average annual rate of 12.78% over the next five years.
Therefore, the stock could also gain the attention of long-term investors.
Technically, Acuity Brands shares seem to be trading with an ascending channel formation in the intraday chart. However, the stock recently pulled back to find the trendline support, creating an opportunity for a rebound.
Therefore, investors could target profits at about $223.72, or higher at $234.27, while $203.67 and $193.47 are crucial support levels.
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