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

·3 min read

In the latest trading session, Academy Sports and Outdoors, Inc. (ASO) closed at $33.02, marking a +1.01% move from the previous day. The stock lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 2.51%, while the tech-heavy Nasdaq lost 0.2%.

Prior to today's trading, shares of the company had lost 11.36% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.16% and the S&P 500's loss of 2.58% in that time.

Investors will be hoping for strength from Academy Sports and Outdoors, Inc. as it approaches its next earnings release. In that report, analysts expect Academy Sports and Outdoors, Inc. to post earnings of $1.29 per share. This would mark year-over-year growth of 18.35%. Meanwhile, our latest consensus estimate is calling for revenue of $1.75 billion, up 9.7% from the prior-year quarter.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained stagnant within the past month. Academy Sports and Outdoors, Inc. is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Academy Sports and Outdoors, Inc. has a Forward P/E ratio of 5.31 right now. For comparison, its industry has an average Forward P/E of 10.98, which means Academy Sports and Outdoors, Inc. is trading at a discount to the group.

Investors should also note that ASO has a PEG ratio of 0.35 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Products was holding an average PEG ratio of 1.23 at yesterday's closing price.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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