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

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In the latest trading session, Academy Sports and Outdoors, Inc. (ASO - Free Report) closed at $39.72, marking a +1.87% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the company had gained 6.73% over the past month, outpacing the Consumer Discretionary sector's loss of 9.97% and the S&P 500's loss of 5.26% in that time.

Wall Street will be looking for positivity from Academy Sports and Outdoors, Inc. as it approaches its next earnings report date. On that day, Academy Sports and Outdoors, Inc. is projected to report earnings of $1.40 per share, which would represent a year-over-year decline of 25.93%. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, down 9.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.02 per share and revenue of $6.66 billion, which would represent changes of -7.63% and -1.64%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Academy Sports and Outdoors, Inc.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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 11.65% higher. Academy Sports and Outdoors, Inc. is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Academy Sports and Outdoors, Inc.'s current valuation metrics, including its Forward P/E ratio of 5.56. For comparison, its industry has an average Forward P/E of 7.78, which means Academy Sports and Outdoors, Inc. is trading at a discount to the group.

It is also worth noting that ASO currently has a PEG ratio of 0.38. 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 1.1 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 160, putting it in the bottom 37% 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.

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


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