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Why Acuity Brands (AYI) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Acuity Brands (AYI)

Headquartered in Atlanta, GA, Acuity Brands, Inc. is the parent company of Acuity Brands Lighting, Inc. (“ABL”) and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 14.7X for the current fiscal year compared to the Building Products - Lighting industry's P/E of 17.8X. Additionally, AYI has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 12.7X. Value investors should also note AYI's Price/Sales ratio of 1.6X.

A company's earnings performance is important for value investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for AYI, while the Zacks Consensus Estimate has increased $0.12 to $13.48 per share. AYI also holds an average earnings surprise of 15%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AYI to their portfolios.

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