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

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Vista Outdoor (VSTO - Free Report) closed at $34.75 in the latest trading session, marking a -1.05% move from the prior day. This change lagged the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.49%.

Coming into today, shares of the maker of firearms, ammunition and accessories had gained 4% in the past month. In that same time, the Consumer Discretionary sector gained 1.94%, while the S&P 500 gained 4.71%.

Vista Outdoor will be looking to display strength as it nears 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, the Zacks Consensus Estimate for revenue is projecting net sales of $764.63 million, up 28.18% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Vista Outdoor. These recent revisions tend to reflect the evolving nature of short-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, 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 1.61% lower within the past month. Vista Outdoor currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Vista Outdoor currently has a Forward P/E ratio of 5.27. This represents a discount compared to its industry's average Forward P/E of 9.96.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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