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

  • In Business
  • 2022-08-12 22:15:10Z
  • By Zacks

Academy Sports and Outdoors, Inc. (ASO) closed at $47 in the latest trading session, marking a +1.08% move from the prior day. The stock lagged the S&P 500's daily gain of 1.73%. At the same time, the Dow added 1.27%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the company had gained 20.97% in the past month. In that same time, the Consumer Discretionary sector gained 12.28%, while the S&P 500 gained 9.34%.

Academy Sports and Outdoors, Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.12, down 9.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, down 4.5% from the year-ago period.

ASO's full-year Zacks Consensus Estimates are calling for earnings of $7.03 per share and revenue of $6.6 billion. These results would represent year-over-year changes of -7.5% and -2.62%, respectively.

Investors might also notice 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 remained stagnant within the past month. Academy Sports and Outdoors, Inc. is currently a Zacks Rank #3 (Hold).

Digging into valuation, Academy Sports and Outdoors, Inc. currently has a Forward P/E ratio of 6.61. This valuation marks a discount compared to its industry's average Forward P/E of 8.87.

Investors should also note that ASO has a PEG ratio of 0.72 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.

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

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