(AZEK) Azek - Ratings and Ratios

The AZEK Company Inc. is a leading manufacturer of building products, catering to the residential, commercial, and industrial sectors across the United States and Canada. With a diverse portfolio of brands, AZEK offers a wide range of products, including decking, railing, exterior trim, and molding, as well as bathroom partitions, lockers, and storage solutions. The companys products are designed to provide durable, low-maintenance, and aesthetically pleasing solutions for outdoor living and commercial spaces.

AZEKs business is segmented into Residential and Commercial, with the Residential segment driving growth through its innovative outdoor living products, such as TimberTech and AZEK Exteriors. The Commercial segment, on the other hand, focuses on providing high-quality bathroom partitions, lockers, and storage solutions under brands like Aria and Eclipse. With a strong presence in the North American market, AZEK has established itself as a key player in the building products industry.

From a technical analysis perspective, AZEKs stock has shown a bullish trend, with its 20-day SMA at $50.79 and 50-day SMA at $49.19, indicating a potential buy signal. The stocks ATR of 0.91 represents a 1.71% daily volatility, suggesting a relatively stable trading environment. With a 52-week high of $54.76 and a low of $36.81, AZEKs stock has demonstrated resilience and growth potential.

Fundamentally, AZEKs market capitalization stands at $7.26 billion, with a P/E ratio of 49.01 and a forward P/E of 35.34, indicating a relatively high valuation. However, the companys RoE of 10.79% suggests a strong ability to generate profits from shareholder equity. Given the current market conditions and AZEKs financial performance, a forecast for the stock price could be around $60 in the next 12-18 months, driven by the companys continued innovation and expansion in the building products market.

Based on the technical and fundamental analysis, a potential trading strategy could involve buying AZEKs stock on dips to the $50 level, with a target price of $60 and a stop-loss at $45. This strategy is based on the assumption that AZEK will continue to demonstrate strong financial performance and growth potential, driven by its innovative products and expanding market presence.