Explore the Potential: JMEE Shows 18% Growth Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2025
0mins
Should l Buy AZZ?
Source: NASDAQ.COM
ETF Performance Analysis: The JPMorgan Market Expansion Enhanced Equity ETF (JMEE) has an implied analyst target price of $74.41, indicating a potential upside of 17.53% from its current trading price of $63.31.
Notable Holdings: Key underlying holdings of JMEE, such as Greif Inc (GEF), Alpha & Omega Semiconductor Ltd. (AOSL), and AZZ Inc (AZZ), show significant upside potential based on analyst target prices, with GEF at 20.26% higher, AOSL at 18.54%, and AZZ at 18.50%.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets could lead to future downgrades if they do not align with market realities.
Investor Research Recommendation: Investors are encouraged to conduct further research to assess the validity of analyst targets in light of recent company and industry developments.
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Analyst Views on AZZ
Wall Street analysts forecast AZZ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AZZ is 127.20 USD with a low forecast of 118.00 USD and a high forecast of 141.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 127.430
Low
118.00
Averages
127.20
High
141.00
Current: 127.430
Low
118.00
Averages
127.20
High
141.00
About AZZ
AZZ Inc. is a provider of hot-dip galvanizing and coil coating solutions to a range of end-markets in North America. The Company operates through three segments. Its AZZ Metal Coatings segment provides metal coating solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating to the North American steel fabrication industry and other industries. AZZ Precoat Metals segment provides aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coils, primarily serving the construction, transportation and other end markets in North America. The AZZ Infrastructure Solutions segment holds a non-controlling interest in AIS Investment Holdings LLC, which is primarily dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in markets worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pier Capital Initiates New Position in AZZ
- New Position: Pier Capital established a new stake in AZZ during Q4, acquiring 70,967 shares for approximately $7.61 million, reflecting confidence in AZZ's future growth potential.
- Holding Value: As of December 31, the value of AZZ's holdings was $7.61 million, representing 1.21% of Pier Capital's $626.39 million in reportable U.S. equity assets, highlighting its significance in the portfolio.
- Company Performance Outlook: AZZ forecasts fiscal 2027 sales between $1.73 billion and $1.78 billion, with adjusted EBITDA potentially reaching $400 million, indicating strong cash flow and profitability in the market.
- Portfolio Strategy: Pier Capital's investment strategy leans towards industrials and cash-generative cyclicals, suggesting AZZ is viewed as a durable infrastructure compounder rather than a short-term trade.
See More
AZZ Inc. Raises FY2026 Capital Expenditure Guidance
- Increased Capital Expenditure: AZZ Inc. expects capital expenditures for FY2026 to rise to approximately $80 to $100 million, up from a previous estimate of $60 to $80 million, reflecting a strategic focus on growth capital to support future business expansion and enhance market competitiveness.
- Debt Management Strategy: The company anticipates a debt-to-leverage ratio between 1.0 to 2.0 times, with interest expenses projected at $35 to $45 million, a strategy aimed at optimizing financial structure and reducing financial risk, thereby strengthening long-term stability.
- Adjusted Earnings Guidance: AZZ has narrowed its adjusted diluted EPS guidance for FY2026 to a range of $5.90 to $6.20, indicating growth potential in its Metal Coatings and Precoat Metals segments while reflecting positive expectations regarding market demand.
- Share Repurchase Program: AZZ has authorized a new $100 million share repurchase program, aimed at enhancing earnings per share and shareholder value, further boosting investor confidence and supporting stock performance.
See More
AZZ Inc. Issues Financial Guidance for FY2027
- Sales Growth Outlook: AZZ anticipates FY2027 sales to range between $1.725 billion and $1.775 billion, reflecting a potential growth of approximately 4.5% compared to FY2026's $1.625 billion to $1.725 billion, indicating strong market demand expectations.
- Adjusted EBITDA Stability: The company expects adjusted EBITDA for FY2027 to be between $360 million and $400 million, remaining stable or slightly increasing from FY2026's $360 million to $380 million, showcasing ongoing efforts in cost control and operational efficiency.
- Earnings Per Share Increase: AZZ projects adjusted diluted EPS for FY2027 to rise to between $6.50 and $7.00, up from FY2026's $5.90 to $6.20, reflecting enhanced profitability and increased shareholder returns.
- Increased Capital Expenditure: The company plans to allocate $800 million to $1 billion for capital expenditures in FY2027, up from $600 million to $800 million in FY2026, aimed at supporting the full ramp-up of its new facility and sustainable market share expansion.
See More
U.S. Stock Futures Decline Amid Sharp Sell-Off in Precious Metals
- Futures Decline: U.S. stock futures fell across major indices on Monday, reflecting market concerns over President Trump's nomination of Kevin Warsh to lead the Federal Reserve, which triggered a sharp sell-off on Friday, with the S&P 500 down 0.58%.
- Precious Metals Drop: Following a record rally in January, gold and silver prices plummeted, with gold spot prices falling 3.25% to $4,707.15 per ounce, indicating market uncertainty regarding future economic conditions.
- Rising Bond Yields: The yield on the 10-year U.S. Treasury bond reached 4.22%, while the two-year bond yield stood at 3.52%, suggesting increased investor expectations for unchanged interest rates, as the CME Group's FedWatch tool indicates an 85.1% likelihood of maintaining current rates in March.
- Company Updates: Walt Disney Co. saw a 0.23% decline ahead of its earnings report, with analysts expecting earnings of $1.56 per share on $25.68 billion in revenue, while AZZ Inc. shares rose 0.96% after announcing a $100 million share repurchase program.
See More
AZZ Board Approves $100 Million Stock Buyback Plan
- Buyback Plan Approval: AZZ's board has approved a new $100 million stock repurchase plan aimed at enhancing shareholder value by reducing the number of outstanding shares, thereby increasing earnings per share.
- Clear Funding Source: The buyback will utilize the company's existing cash flow and liquidity, ensuring that operations remain unaffected while executing the stock repurchase, reflecting the company's robust financial health.
- Market Reaction Anticipation: This move is expected to positively impact AZZ's stock price, boosting investor confidence and potentially attracting more institutional investors, which could further drive the stock price upward.
- Long-term Strategic Intent: By implementing the stock buyback, AZZ aims to demonstrate confidence in its future growth and enhance its market competitiveness through optimized capital structure.
See More
Wall Street Focus on Disney and Tyson Foods Earnings Reports
- Disney Earnings Expectations: Wall Street anticipates that Walt Disney Co. (NYSE:DIS) will report quarterly earnings of $1.56 per share and revenue of $25.68 billion before the market opens, indicating ongoing growth potential in its streaming and theme park businesses.
- Tyson Foods Forecast: Analysts expect Tyson Foods Inc. (NYSE:TSN) to post quarterly earnings of 94 cents per share on revenue of $14.09 billion, reflecting stable performance in the meat market, which could positively impact its stock price.
- AZZ Share Repurchase Program: AZZ Inc. (NYSE:AZZ) has announced a new $100 million share repurchase program, signaling confidence in its stock and potentially enhancing investor expectations for future growth.
- Market Reactions: In after-hours trading, Disney shares rose 0.2% to $113.00, while Tyson Foods shares increased by 0.6% to $65.70, indicating investor optimism ahead of the earnings reports.
See More
Pier Capital Initiates New Position in AZZ
- New Position: Pier Capital established a new stake in AZZ during Q4, acquiring 70,967 shares for approximately $7.61 million, reflecting confidence in AZZ's future growth potential.
- Holding Value: As of December 31, the value of AZZ's holdings was $7.61 million, representing 1.21% of Pier Capital's $626.39 million in reportable U.S. equity assets, highlighting its significance in the portfolio.
- Company Performance Outlook: AZZ forecasts fiscal 2027 sales between $1.73 billion and $1.78 billion, with adjusted EBITDA potentially reaching $400 million, indicating strong cash flow and profitability in the market.
- Portfolio Strategy: Pier Capital's investment strategy leans towards industrials and cash-generative cyclicals, suggesting AZZ is viewed as a durable infrastructure compounder rather than a short-term trade.
See More
AZZ Inc. Raises FY2026 Capital Expenditure Guidance
- Increased Capital Expenditure: AZZ Inc. expects capital expenditures for FY2026 to rise to approximately $80 to $100 million, up from a previous estimate of $60 to $80 million, reflecting a strategic focus on growth capital to support future business expansion and enhance market competitiveness.
- Debt Management Strategy: The company anticipates a debt-to-leverage ratio between 1.0 to 2.0 times, with interest expenses projected at $35 to $45 million, a strategy aimed at optimizing financial structure and reducing financial risk, thereby strengthening long-term stability.
- Adjusted Earnings Guidance: AZZ has narrowed its adjusted diluted EPS guidance for FY2026 to a range of $5.90 to $6.20, indicating growth potential in its Metal Coatings and Precoat Metals segments while reflecting positive expectations regarding market demand.
- Share Repurchase Program: AZZ has authorized a new $100 million share repurchase program, aimed at enhancing earnings per share and shareholder value, further boosting investor confidence and supporting stock performance.
See More
AZZ Inc. Issues Financial Guidance for FY2027
- Sales Growth Outlook: AZZ anticipates FY2027 sales to range between $1.725 billion and $1.775 billion, reflecting a potential growth of approximately 4.5% compared to FY2026's $1.625 billion to $1.725 billion, indicating strong market demand expectations.
- Adjusted EBITDA Stability: The company expects adjusted EBITDA for FY2027 to be between $360 million and $400 million, remaining stable or slightly increasing from FY2026's $360 million to $380 million, showcasing ongoing efforts in cost control and operational efficiency.
- Earnings Per Share Increase: AZZ projects adjusted diluted EPS for FY2027 to rise to between $6.50 and $7.00, up from FY2026's $5.90 to $6.20, reflecting enhanced profitability and increased shareholder returns.
- Increased Capital Expenditure: The company plans to allocate $800 million to $1 billion for capital expenditures in FY2027, up from $600 million to $800 million in FY2026, aimed at supporting the full ramp-up of its new facility and sustainable market share expansion.
See More
U.S. Stock Futures Decline Amid Sharp Sell-Off in Precious Metals
- Futures Decline: U.S. stock futures fell across major indices on Monday, reflecting market concerns over President Trump's nomination of Kevin Warsh to lead the Federal Reserve, which triggered a sharp sell-off on Friday, with the S&P 500 down 0.58%.
- Precious Metals Drop: Following a record rally in January, gold and silver prices plummeted, with gold spot prices falling 3.25% to $4,707.15 per ounce, indicating market uncertainty regarding future economic conditions.
- Rising Bond Yields: The yield on the 10-year U.S. Treasury bond reached 4.22%, while the two-year bond yield stood at 3.52%, suggesting increased investor expectations for unchanged interest rates, as the CME Group's FedWatch tool indicates an 85.1% likelihood of maintaining current rates in March.
- Company Updates: Walt Disney Co. saw a 0.23% decline ahead of its earnings report, with analysts expecting earnings of $1.56 per share on $25.68 billion in revenue, while AZZ Inc. shares rose 0.96% after announcing a $100 million share repurchase program.
See More
AZZ Board Approves $100 Million Stock Buyback Plan
- Buyback Plan Approval: AZZ's board has approved a new $100 million stock repurchase plan aimed at enhancing shareholder value by reducing the number of outstanding shares, thereby increasing earnings per share.
- Clear Funding Source: The buyback will utilize the company's existing cash flow and liquidity, ensuring that operations remain unaffected while executing the stock repurchase, reflecting the company's robust financial health.
- Market Reaction Anticipation: This move is expected to positively impact AZZ's stock price, boosting investor confidence and potentially attracting more institutional investors, which could further drive the stock price upward.
- Long-term Strategic Intent: By implementing the stock buyback, AZZ aims to demonstrate confidence in its future growth and enhance its market competitiveness through optimized capital structure.
See More
Wall Street Focus on Disney and Tyson Foods Earnings Reports
- Disney Earnings Expectations: Wall Street anticipates that Walt Disney Co. (NYSE:DIS) will report quarterly earnings of $1.56 per share and revenue of $25.68 billion before the market opens, indicating ongoing growth potential in its streaming and theme park businesses.
- Tyson Foods Forecast: Analysts expect Tyson Foods Inc. (NYSE:TSN) to post quarterly earnings of 94 cents per share on revenue of $14.09 billion, reflecting stable performance in the meat market, which could positively impact its stock price.
- AZZ Share Repurchase Program: AZZ Inc. (NYSE:AZZ) has announced a new $100 million share repurchase program, signaling confidence in its stock and potentially enhancing investor expectations for future growth.
- Market Reactions: In after-hours trading, Disney shares rose 0.2% to $113.00, while Tyson Foods shares increased by 0.6% to $65.70, indicating investor optimism ahead of the earnings reports.
See More
