Back to top

Image: Bigstock

AMMO, Inc. (POWW) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

AMMO, Inc. (POWW - Free Report) closed at $7.08 in the latest trading session, marking a +0.43% move from the prior day. This move outpaced the S&P 500's daily loss of 0.02%.

Coming into today, shares of the company had lost 19.8% in the past month. In that same time, the Consumer Discretionary sector lost 5.03%, while the S&P 500 gained 2.91%.

POWW will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.06, up 185.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $44.2 million, up 357.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $206.4 million. These totals would mark changes of +428.57% and +230.28%, respectively, from last year.

Any recent changes to analyst estimates for POWW should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.63% lower within the past month. POWW is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that POWW has a Forward P/E ratio of 19.05 right now. Its industry sports an average Forward P/E of 12.81, so we one might conclude that POWW is trading at a premium comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AMMO, Inc. (POWW) - free report >>

Published in