Acuity Brands Stock Buy Hold or Sell Recommendation
AYI Stock | USD 268.73 1.14 0.43% |
Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Acuity Brands is 'Strong Buy'. Macroaxis provides Acuity Brands buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AYI positions. The advice algorithm takes into account all of Acuity Brands' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Acuity Brands' buy or sell advice are summarized below:
Real Value 297.3 | Hype Value 268.73 | Market Value 268.73 | Naive Value 268.14 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Acuity Brands given historical horizon and risk tolerance towards Acuity Brands. When Macroaxis issues a 'buy' or 'sell' recommendation for Acuity Brands, the advice is generated through an automated system that utilizes algorithms and statistical models.
Acuity |
Execute Acuity Brands Buy or Sell Advice
The Acuity recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Acuity Brands. Macroaxis does not own or have any residual interests in Acuity Brands or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Acuity Brands' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Acuity Brands Trading Alerts and Improvement Suggestions
Over 100.0% of the company shares are held by institutions such as insurance companies | |
On 14th of February 2024 Acuity Brands paid $ 0.15 per share dividend to its current shareholders | |
Latest headline from investing.com: Acuity Brands sets quarterly dividend at 15 cents per share |
Acuity Brands Returns Distribution Density
The distribution of Acuity Brands' historical returns is an attempt to chart the uncertainty of Acuity Brands' future price movements. The chart of the probability distribution of Acuity Brands daily returns describes the distribution of returns around its average expected value. We use Acuity Brands price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Acuity Brands returns is essential to provide solid investment advice for Acuity Brands.
Mean Return | 0.45 | Value At Risk | -1.29 | Potential Upside | 2.37 | Standard Deviation | 1.80 |
Return Density |
Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Acuity Brands historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Acuity Brands Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Acuity Brands or Electrical Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Acuity Brands' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Acuity stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.35 | |
β | Beta against NYSE Composite | 0.68 | |
σ | Overall volatility | 1.86 | |
Ir | Information ratio | 0.17 |
Acuity Brands Volatility Alert
Acuity Brands has low volatility with Treynor Ratio of 0.65, Maximum Drawdown of 14.1 and kurtosis of 21.26. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Acuity Brands' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Acuity Brands' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Acuity Brands Fundamentals Vs Peers
Comparing Acuity Brands' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Acuity Brands' direct or indirect competition across all of the common fundamentals between Acuity Brands and the related equities. This way, we can detect undervalued stocks with similar characteristics as Acuity Brands or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Acuity Brands' fundamental indicators could also be used in its relative valuation, which is a method of valuing Acuity Brands by comparing valuation metrics with those of similar companies.
Better Than Average | Worse Than Average | Compare Acuity Brands to competition |
Fundamentals | Acuity Brands | Peer Average |
Return On Equity | 0.19 | -0.31 |
Return On Asset | 0.0921 | -0.14 |
Profit Margin | 0.1 % | (1.27) % |
Operating Margin | 0.14 % | (5.51) % |
Current Valuation | 8.32 B | 16.62 B |
Shares Outstanding | 30.82 M | 571.82 M |
Shares Owned By Insiders | 0.20 % | 10.09 % |
Shares Owned By Institutions | 99.80 % | 39.21 % |
Number Of Shares Shorted | 940.94 K | 4.71 M |
Price To Earning | 17.22 X | 28.72 X |
Price To Book | 4.00 X | 9.51 X |
Price To Sales | 2.12 X | 11.42 X |
Revenue | 3.95 B | 9.43 B |
Gross Profit | 1.71 B | 27.38 B |
EBITDA | 585.7 M | 3.9 B |
Net Income | 346 M | 570.98 M |
Cash And Equivalents | 397.9 M | 2.7 B |
Cash Per Share | 7.03 X | 5.01 X |
Total Debt | 495.6 M | 5.32 B |
Debt To Equity | 0.31 % | 48.70 % |
Current Ratio | 2.00 X | 2.16 X |
Book Value Per Share | 67.49 X | 1.93 K |
Cash Flow From Operations | 578.1 M | 971.22 M |
Short Ratio | 4.79 X | 4.00 X |
Earnings Per Share | 11.67 X | 3.12 X |
Price To Earnings To Growth | 1.91 X | 4.89 X |
Target Price | 254.14 | |
Number Of Employees | 12.2 K | 18.84 K |
Beta | 1.49 | -0.15 |
Market Capitalization | 8.25 B | 19.03 B |
Total Asset | 3.41 B | 29.47 B |
Retained Earnings | 3.51 B | 9.33 B |
Working Capital | 799.8 M | 1.48 B |
Note: Disposition of 5396 shares by Karen Holcom of Acuity Brands at 159.11 subject to Rule 16b-3 [view details]
Acuity Brands Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Acuity . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution | 2619.4 | |||
Daily Balance Of Power | 0.5 | |||
Rate Of Daily Change | 1.0 | |||
Day Median Price | 268.58 | |||
Day Typical Price | 268.63 | |||
Price Action Indicator | 0.72 | |||
Period Momentum Indicator | 1.14 |
About Acuity Brands Buy or Sell Advice
When is the right time to buy or sell Acuity Brands? Buying financial instruments such as Acuity Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Acuity Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Machinery Theme or any other thematic opportunities.
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Check out Acuity Brands Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Acuity Stock please use our How to Invest in Acuity Brands guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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Is Acuity Brands' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Acuity Brands. If investors know Acuity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Acuity Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Acuity Brands is measured differently than its book value, which is the value of Acuity that is recorded on the company's balance sheet. Investors also form their own opinion of Acuity Brands' value that differs from its market value or its book value, called intrinsic value, which is Acuity Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Acuity Brands' market value can be influenced by many factors that don't directly affect Acuity Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Acuity Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Acuity Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Acuity Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.