U.S. Markets closed

American Outdoor Brands (AOBC) Gains But Lags Market: What You Should Know

Zacks Equity Research

American Outdoor Brands (AOBC) closed at $7.80 in the latest trading session, marking a +0.26% move from the prior day. This change lagged the S&P 500's 1.21% gain on the day. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 1.35%.

Coming into today, shares of the firearm maker had lost 18.11% in the past month. In that same time, the Consumer Discretionary sector lost 8.53%, while the S&P 500 lost 3.6%.

AOBC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.07, down 66.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $127.20 million, down 8.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.81 per share and revenue of $641.05 million. These totals would mark changes of -2.41% and +0.43%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AOBC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AOBC currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, AOBC is holding a Forward P/E ratio of 9.64. This valuation marks a discount compared to its industry's average Forward P/E of 13.26.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
American Outdoor Brands Corporation (AOBC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research