NEW YORK (TheStreet) -- Armstrong World Industries (AWI) stock has been placed on the Conviction Buy list, according to Goldman Sachs. Analysts said the company has more than 80% of revenue exposed to non-residential construction. A $68 price target has been allocated.
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Separately, TheStreet Ratings team rates ARMSTRONG WORLD INDUSTRIES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARMSTRONG WORLD INDUSTRIES (AWI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AWI's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 1.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 463.3% when compared to the same quarter one year prior, rising from $3.00 million to $16.90 million.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- ARMSTRONG WORLD INDUSTRIES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ARMSTRONG WORLD INDUSTRIES reported lower earnings of $1.70 versus $2.41 in the prior year. This year, the market expects an improvement in earnings ($2.63 versus $1.70).
- You can view the full analysis from the report here: AWI Ratings Report