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Vista Outdoor (VSTO) Gains As Market Dips: What You Should Know

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Vista Outdoor (VSTO - Free Report) closed at $9.04 in the latest trading session, marking a +0.33% move from the prior day. The stock outpaced the S&P 500's daily loss of 3.01%. Elsewhere, the Dow lost 2.59%, while the tech-heavy Nasdaq lost 3.55%.

Heading into today, shares of the maker of firearms, ammunition and accessories had gained 12.91% over the past month, lagging the Consumer Discretionary sector's gain of 20.97% and the S&P 500's gain of 22.85% in that time.

Investors will be hoping for strength from VSTO as it approaches its next earnings release, which is expected to be May 7, 2020. In that report, analysts expect VSTO to post earnings of $0.07 per share. This would mark year-over-year growth of 600%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $449.22 million, down 12.83% from the year-ago period.

It is also important to note the recent changes to analyst estimates for VSTO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 5.26% higher within the past month. VSTO is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note VSTO's current valuation metrics, including its Forward P/E ratio of 22.52. This valuation marks a premium compared to its industry's average Forward P/E of 14.87.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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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