Stock With Track Record & Analyst Upside: Anixter International Inc. (NYSE:AXE)

Shares of Anixter International Inc. (NYSE:AXE) have been experiencing an accelerated earnings and sales growth over the past 5 years.  Over that time frame the firm has seen earnings growth of 2.90% and sales growth of 4.90%.

Stock market investors may be taking some time to review portfolio allocation. Rebalancing the portfolio may be necessary for some but not for others. Rebalancing the portfolio may help provide a strategy for when the market becomes highly volatile. This process may also help keep the investor buying low and selling high. Investors may also be looking at some different stocks to explore in the next few months. This may include reviewing some foreign markets or some new sectors that were previously not included in the stock portfolio. Completing all the necessary research is typically a good way to start building a more comprehensive pool of diversified stocks.  

While the firm has enjoyed the upward movement, it’s important to look at analyst expectations and where the company is headed from here.  On a consensus basis, analysts are projecting EPS growth of 15.60% for next year and have a $78.00 one year price target on the stock.   The stock recently traded at $69.15.

RECENT PERFORMANCE

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Anixter International Inc. (NYSE:AXE)‘s stock was -9.01%.  Over the last week of the month, it was -1.91%, 6.55% over the last quarter, and  -11.69% for the past six months. 

Earnings Per Share (EPS):

EPS is what each share is worth and indicates how much money their sharehoders would acquire if the company was to pay out all of its profits.  Earnings Per Share is computed by dividing the profit total by its share total.  If a company’s profit is $800 million and there are 40 million shares, then the EPS is $20.  EPS is a fantastic way to compare and contrast companies in the same industry.  When a company shows a steady upwards earnings trend, it is a good indicator that the company will dominate companies with a more volatile earnings trend. Anixter International Inc. (NYSE:AXE)’s EPS is 4.09.  Last year, their EPS growth was 18.00% while their EPS growth over the past five years is 2.90%.  Analysts are predicting Anixter International Inc.’s stock to grow 15.60% over the next year and 8.00% over the next five.

Investors often have to calculate risk/reward scenarios when navigating the equity market. Keeping track of alternatives and gauging the likelihood of certain outcomes can help with designing a legitimate strategy. When all the research and planning has been completed, there may come a time when the investor has to make a decision and get ready to take some action. There will obviously be some trades that work out great and others that don’t. Accepting the fact that this is part of the process can help keep the investor focused on the next trade instead of lamenting the past. 

Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.