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American Outdoor Brands (AOBC) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

American Outdoor Brands (AOBC) closed at $9.03 in the latest trading session, marking a +0.22% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 0.54%.

Heading into today, shares of the firearm maker had gained 5.88% over the past month, outpacing the Consumer Discretionary sector's gain of 3.65% and the S&P 500's gain of 3.68% in that time.

AOBC will be looking to display strength as it nears its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $127.20 million, down 8.38% from the year-ago period.

AOBC's full-year Zacks Consensus Estimates are calling for earnings of $0.81 per share and revenue of $641.05 million. These results would represent year-over-year changes of -2.41% and +0.43%, respectively.

Investors should also note any recent changes to analyst estimates for AOBC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 2.02% lower. AOBC is currently a Zacks Rank #3 (Hold).

Investors should also note AOBC's current valuation metrics, including its Forward P/E ratio of 11.17. This valuation marks a discount compared to its industry's average Forward P/E of 16.41.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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