New Lifetime High Reached By Acuity Brands (AYI)

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.

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 $50.0 million.
  • AYI has traded 2,409 shares today.
  • AYI is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AYI with the Ticky from Trade-Ideas. See the FREE profile for AYI NOW at Trade-Ideas

More details on AYI:

Acuity Brands, Inc. designs, produces, and distributes lighting solutions, components, and services for commercial, institutional, industrial, infrastructure, and residential applications in North America and internationally. The stock currently has a dividend yield of 0.3%. AYI has a PE ratio of 37.0. Currently there are 8 analysts that rate Acuity Brands a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Acuity Brands has been 338,800 shares per day over the past 30 days. Acuity has a market cap of $7.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.88 and a short float of 2.2% with 2.23 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.8%. 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.
  • AYI's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AYI has a quick ratio of 2.20, which demonstrates the ability of the company to cover short-term liquidity needs.
  • ACUITY BRANDS INC has improved earnings per share by 42.7% 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 $4.05 versus $2.94 in the prior year. This year, the market expects an improvement in earnings ($5.35 versus $4.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 41.9% when compared to the same quarter one year prior, rising from $32.70 million to $46.40 million.
  • Net operating cash flow has significantly increased by 105.71% to $28.80 million when compared to the same quarter last year. In addition, ACUITY BRANDS INC has also vastly surpassed the industry average cash flow growth rate of -16.56%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Global Stocks Rally as US-China Trade War Thaws; Dow Could Test 25,000

Global Stocks Rally as US-China Trade War Thaws; Dow Could Test 25,000

Tesla Jumps on Model 3 Expansion Hopes, China Trade Truce

Tesla Jumps on Model 3 Expansion Hopes, China Trade Truce

Apple Gains as U.S. China Trade Tensions Ease After Weekend Summit

Apple Gains as U.S. China Trade Tensions Ease After Weekend Summit

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO