AZZ Forecast


Bullish Case: AZZ's strong earnings report, upward revisions in broker ratings, and the price target increase suggest continued bullish momentum. Historical returns by holding periods show a strong likelihood of growth up to 2 years.


Bearish Case: High implied volatility and mean-reverting nature indicate potential correction risks. Despite recent gains, the elevated volatility surface hints at market uncertainty.


Potential Outcomes: Increased investor confidence: 30%, Stable stock price: 30%, Reduced confidence due to macro risks: 40%.


Trading Oracle: Initiate bullish debit spreads using long volatility strategy, targeting $85 August calls. Short-term outlook (1-2 months), leveraging current strong earnings and positive sentiment. Maintain strict risk management and monitor volatility shifts.


July 16, 2024


AZZ Forecast

AZZ      AZZ











Correlated Assets

Assets that tend to move strongly with AZZ



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.89)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.46)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.74)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.75)



Uncorrelated Assets

Assets with little price relationship to AZZ



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.46)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.74)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.75)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.89)



Anticorrelated Assets

Assets that tend to move strongly against AZZ



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.89)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.46)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.74)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.75)





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