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Academy Sports and Outdoors, Inc. (ASO) Gains But Lags Market: What You Should Know

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Academy Sports and Outdoors, Inc. (ASO - Free Report) closed at $36.09 in the latest trading session, marking a +0.81% move from the prior day. This move lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 1.55%, while the tech-heavy Nasdaq added 0.5%.

Heading into today, shares of the company had lost 1.05% over the past month, outpacing the Consumer Discretionary sector's loss of 12.26% and the S&P 500's loss of 4.46% in that time.

Academy Sports and Outdoors, Inc. will be looking to display strength as it nears its next earnings release, which is expected to be March 29, 2022. 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.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.49% lower within the past month. Academy Sports and Outdoors, Inc. currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Academy Sports and Outdoors, Inc. currently has a Forward P/E ratio of 5.84. Its industry sports an average Forward P/E of 8.91, so we one might conclude that Academy Sports and Outdoors, Inc. is trading at a discount comparatively.

We can also see that ASO currently has a PEG ratio of 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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