AYI Stock Analysis: Buy, Sell, or Hold?

AYI - Acuity Inc.

ELECTRIC LIGHTING & WIRING EQUIPMENT
$309.24
-4.28 (-1.37%) ▼
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Apr 02, 2026

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
✅ BUY SIGNAL: AYI trading at deep discount. Market pricing in -5.2% annual earnings decline, creating value opportunity for patient investors.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$515.68
Based on 7.0% avg growth
INTRINSIC VALUE TODAY
$320.20
3.4% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.9x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: AYI is currently trading at $309.24, which is considered oversold relative to its 30-day fair value range of $310.09 to $364.02. From a valuation perspective, the stock is trading at a discount (Forward PE: 14.4) compared to its historical average (16.9). Remarkably, the market is currently pricing in an annual earnings decline of 5.2% over the next few years. This pessimistic expectation contrasts with the company's recent 14.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, AYI is in a downtrend. The price is currently testing key support at $306.56. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $391.25 (+24.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position OVERSOLD
Fair Price Range $310.09 - $364.02
Company Quality Score 59/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 83.5%

All Signals

  • BULLISH: Price oversold vs 30-day range
  • BULLISH: Options cheap (IV 0th percentile)
  • NEUTRAL: Mixed technical signals (45/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 24.8% below Wall St target ($391.25)

Fair Price Analysis

30-Day Fair Range $310.09 - $364.02
Current vs Fair Value OVERSOLD
Expected Move (7 Days) ±$11.68 (3.8%)

Support & Resistance Levels

Support Level $306.57
Resistance Level $324.04
Current Trend Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 14.40
Wall Street Target $391.25 (+24.8%)
Revenue Growth (YoY) 20.2%
Earnings Growth (YoY) 14.0%
Profit Margin 9.0%
Valuation Discount vs History -5.2% cheaper
PE vs Historical 14.4 vs 16.9 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -5.2% (market-implied from PE analysis)
1-Year Target $297.22 (-5%)
2-Year Target $281.76 (-10%)
3-Year Target $267.11 (-15%)
3-Yr Target (if PE normalizes) (PE: 14→17) $313.56 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 10.0%) $646.11 (+106%)
Base: (SPY PE: 14.4, Growth: 10.0%) $417.12 (+33%)
Bear: (PE: 12.2, Growth: 10.0%) $354.55 (+13%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 23.99 | Current EPS (TTM): $13.01
Bull Case $574.77 (+86%)
Analyst growth 67.4%, PE expands to 26.4
Base Case $522.52 (+69%)
Market implied 67.4%, PE stable at 24.0
Bear Case $212.27 (-31%)
Severe decline -20.0%, PE contracts to 20.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 14.4 to 16.9
Stabilization Target: $368.04 (+17.4%)
PE Expansion Potential: +17.4%
Last updated: January 31, 2026 8:56 AM ET
Data refreshes hourly during market hours. Next update: 9:56 AM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL

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Advanced AYI Option Strategies

Professional options setups generated by AI based on today's AYI price and gamma walls.

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