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Vista Outdoor (VSTO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Vista Outdoor (VSTO - Free Report) closed at $37.06, marking a -1.49% move from the previous day. This move lagged the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the maker of firearms, ammunition and accessories had gained 3.29% in the past month. In that same time, the Consumer Discretionary sector gained 0.44%, while the S&P 500 gained 6.02%.

Investors will be hoping for strength from Vista Outdoor as it approaches its next earnings release. In that report, analysts expect Vista Outdoor to post earnings of $1.81 per share. This would mark year-over-year growth of 77.45%. Meanwhile, our latest consensus estimate is calling for revenue of $764.63 million, up 28.18% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.06 per share and revenue of $3 billion. These totals would mark changes of +120.22% and +34.83%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Vista Outdoor. These recent revisions tend to reflect the evolving nature of short-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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Vista Outdoor is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Vista Outdoor currently has a Forward P/E ratio of 4.67. This represents a discount compared to its industry's average Forward P/E of 10.39.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% 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.

To follow VSTO in the coming trading sessions, be sure to utilize Zacks.com.


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