Today Acuity Brands (AYI) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Acuity Brands ( AYI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Acuity Brands as such a stock due to the following factors:

  • AYI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.8 million.
  • AYI has traded 531,171 shares today.
  • AYI is trading at a new lifetime high.

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More details on AYI:

Acuity Brands, Inc., through its subsidiaries, engages in the design, production, and distribution of lighting solutions and services in North America and internationally. The stock currently has a dividend yield of 0.6%. AYI has a PE ratio of 34.0. Currently there are 3 analysts that rate Acuity Brands a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Acuity Brands has been 268,400 shares per day over the past 30 days. Acuity has a market cap of $3.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.67 and a short float of 8.7% with 9.33 days to cover. Shares are up 34.5% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Acuity Brands as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • AYI's revenue growth has slightly outpaced the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 12.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, AYI has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
  • ACUITY BRANDS INC has improved earnings per share by 32.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACUITY BRANDS INC increased its bottom line by earning $2.94 versus $2.73 in the prior year. This year, the market expects an improvement in earnings ($3.96 versus $2.94).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electrical Equipment industry average. The net income increased by 35.2% when compared to the same quarter one year prior, rising from $33.20 million to $44.90 million.
  • Powered by its strong earnings growth of 32.05% and other important driving factors, this stock has surged by 56.71% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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