Back to top

Image: Bigstock

Academy Sports and Outdoors, Inc. (ASO) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Academy Sports and Outdoors, Inc. (ASO - Free Report) closed at $36.76, marking a -1.63% move from the previous day. This move lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 0.37%.

Heading into today, shares of the company had lost 10.64% over the past month, lagging the Consumer Discretionary sector's loss of 10.28% and the S&P 500's loss of 6.51% in that time.

Wall Street will be looking for positivity from Academy Sports and Outdoors, Inc. as it approaches its next earnings report date. In that report, analysts expect Academy Sports and Outdoors, Inc. to post earnings of $1.29 per share. This would mark year-over-year growth of 18.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 9.7% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Academy Sports and Outdoors, Inc.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Academy Sports and Outdoors, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Academy Sports and Outdoors, Inc. has a Forward P/E ratio of 6.07 right now. This represents a discount compared to its industry's average Forward P/E of 10.27.

We can also see that ASO currently has a PEG ratio of 0.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ASO's industry had an average PEG ratio of 1.22 as of yesterday's close.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% 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:


Academy Sports and Outdoors, Inc. (ASO) - free report >>

Published in