Should you acquire Acuity Brands (NYSE:AYI) based on current technical indicators?

AYI
 Stock
  

USD 187.88  0.62  0.33%   

As many millenniums are excited about industrials space, it is only fair to concentrate on Acuity Brands against current market trends. As expected, Acuity Brands is starting to reaffirm its true potential as stockholders are becoming more and more confident in the future outlook. Much of the drifts of the company stock price movements has been an effusion of what is happening in the market overall. The occurrence of stable basic indicators of the company implies a mid-run price swing for stockholders of Acuity. Acuity Brands is scheduled to announce its earnings tomorrow. The next fiscal year end is expected on the 5th of October 2022.
Published over a month ago
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Acuity Brands's average rating is Buy from 7 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Acuity Brands market sentiment investors' perception of the future value of Acuity. Let us look at a few aspects of Acuity technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Acuity Brands. In general, we focus on analyzing Acuity Brands stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Acuity Brands's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Acuity Brands's intrinsic value. In addition to deriving basic predictive indicators for Acuity Brands, we also check how macroeconomic factors affect Acuity Brands price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Acuity Brands' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Acuity Brands in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Acuity Brands. Your research has to be compared to or analyzed against Acuity Brands' peers to derive any actionable benefits. When done correctly, Acuity Brands' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Acuity Brands.

How does Acuity Stands against Peers?

Analyzing Acuity Brands competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Acuity Brands across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Acuity Brands Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Acuity Brands, but it might be worth checking our own buy vs. sell analysis

Acuity Brands exotic insider transaction detected

Legal trades by Acuity Brands 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:
Acuity insider trading alert for general transaction of common stock by Karen Holcom, SVP Chief Financial Officer, on 12th of October 2022. This event was filed by Acuity Brands Inc with SEC on 2022-10-12. Annual statement of changes in beneficial ownership - SEC Form 5. Karen Holcom currently serves as chief financial officer, senior vice president of Acuity Brands [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.

Closer look at Acuity Brands Downside Variance

Acuity Brands has current Downside Variance of 4.27. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
 = 
SUM(RET DEV)2 
N(ER) 
 = 
4.27
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period

Will Acuity Brands growth be real after the rise?

Current Market Risk Adjusted Performance is up to 0.03. Price may drop again. Acuity Brands currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.19. However, we advise investors to further question Acuity Brands expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. 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 stocks as prices fall.

Our Takeaway on Acuity Brands Investment

While some firms under the electrical equipment & parts industry are still a bit expensive, Acuity Brands may offer a potential longer-term growth to stockholders. The bottom line, as of the 3rd of October 2022, our research shows that Acuity Brands is a rather very steady investment opportunity with a low odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our latest 90 days buy-hold-sell recommendation on the company is Strong Hold.

Editorial Staff

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 Ellen Johnson do not own shares of Acuity Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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