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

Zacks Equity Research

American Outdoor Brands (AOBC) closed the most recent trading day at $9.47, moving +0.42% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, added 0.85%.

Coming into today, shares of the firearm maker had gained 12.4% in the past month. In that same time, the Consumer Discretionary sector lost 0.32%, while the S&P 500 gained 2.08%.

Wall Street will be looking for positivity from AOBC as it approaches its next earnings report date. In that report, analysts expect AOBC to post earnings of $0.07 per share. This would mark a year-over-year decline of 66.67%. Meanwhile, our latest consensus estimate is calling for revenue of $127.20 million, down 8.38% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.81 per share and revenue of $641.05 million, which would represent changes of -2.41% and +0.43%, respectively, from the prior year.

Any recent changes to analyst estimates for AOBC should also be noted by investors. These revisions help to show the ever-changing nature of near-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. The Zacks Consensus EPS estimate remained stagnant within the past month. AOBC is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, AOBC currently has a Forward P/E ratio of 11.69. This valuation marks a discount compared to its industry's average Forward P/E of 15.83.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 29% 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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