AZZ Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>AZZ</div>
AZZ -- USA Stock  

USD 35.36  0.54  1.55%

My story will break down AZZ. Why are we still confident in our hopes for a recovery. On the 12th of October 2020 the company is traded for 37.34. AZZ Inc has historical hype elasticity of 0.17. The average price elasticity to hype of competition is about -0.13. The entity is forecasted to increase in value after the next headline, with the price going to jump to 37.35. The current volatility of media hype impact on AZZ stock price is is way over 100 percent making price predictions on social media along less reliable. The price jump on the next news is estimated to be 0.46%, whereas the daily expected return is presently at 0.4%. The volatility of related hype on AZZ is about 614.42% with expected price after next announcement by competition of 37.21 Considering the 30-days investment horizon, the next forecasted press release will be in about 7 days.
Published over a week ago
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Is AZZ (NYSE:AZZ) gaining more confidence from investors?
On a scale of 0 to 100, AZZ holds a performance score of 14. The firm shows a Beta (market volatility) of 0.7241, which signifies possible diversification benefits within a given portfolio. Let's try to break down what AZZ's beta means in this case. As returns on the market increase, AZZ returns are expected to increase less than the market. However, during the bear market, the loss on holding AZZ will be expected to be smaller as well. Although it is vital to follow AZZ Inc historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The way in which we are foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining AZZ Inc technical indicators, you can currently evaluate if the expected return of 0.4% will be sustainable into the future. Please makes use of AZZ Inc sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change to make a quick decision on whether AZZ price patterns will revert.
The successful prediction of AZZ stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as AZZ Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of AZZ based on AZZ hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to AZZ's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to AZZ's related companies.

Use Technical Analysis to project AZZ expected Price

AZZ technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of AZZ technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of AZZ trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How AZZ utilizes its cash?

To perform a cash flow analysis of AZZ, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AZZ is receiving and how much cash it distributes out in a given period. The AZZ cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AZZ Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. AZZ reported Net Cash Flow from Operations of 144.76 Million in 2019

Exercise or conversion by Philip Schlom of 1523 shares of AZZ subject to Rule 16b-3

Legal trades by AZZ insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AZZ insider trading alert for exercise of restricted stock units by Philip Schlom, VP Chief Accounting Officer, on 22nd of October 2020. This event was filed by Azz Inc with SEC on 2020-10-22. Statement of changes in beneficial ownership - SEC Form 4. Philip Schlom currently serves as interim chief financial officer, chief accounting officer, vice president of AZZ Inc [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for AZZ

The current price rise of AZZ Inc could raise concerns from investors as the firm it trading at a share price of 37.34 on slow start in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.96. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2017 2018 2019 2020 (projected)
Long Term Debt to Equity0.510.40.120.13
Interest Coverage3.485.147.287.71

Deferred Revenue Breakdown

AZZ Deferred Revenue yearly trend continues to be fairly stable with very little volatility. Deferred Revenue will likely drop to about 17.6 M in 2020. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. AZZ Deferred Revenue is fairly stable at the moment as compared to the past year. AZZ reported Deferred Revenue of 18.42 Million in 2019
20111.77 Million
20133.02 Million
20144.67 Million
201520.62 Million
201722.7 Million
201856.93 Million
201918.42 Million
202017.63 Million

Our perspective of the current AZZ rise

Current variance is at 3.91. As of the 12th of October 2020, AZZ shows the mean deviation of 1.46, and Risk Adjusted Performance of 0.1888. AZZ Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for AZZ Inc, which can be compared to its rivals. Please confirm AZZ Inc jensen alpha and semi variance to decide if AZZ Inc is priced fairly, providing market reflects its regular price of 37.34 per share. Given that AZZ has jensen alpha of 0.2349, we suggest you to validate AZZ Inc's prevailing market performance to make sure the company can sustain itself next year.

Our Conclusion on AZZ

While some firms within the electrical equipment & parts industry are still a little expensive, even after the recent corrections, AZZ may offer a potential longer-term growth to investors. To summarize, as of the 12th of October 2020, our analysis shows that AZZ follows the market closely. The company is undervalued and projects low probability of distress for the next 2 years. Our primary 30 days buy-or-sell advice on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of AZZ Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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