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American Outdoor Brands (SWBI) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3 min read

American Outdoor Brands (SWBI) closed the most recent trading day at $20.68, moving -0.05% from the previous trading session. This change lagged the S&P 500's 0.23% gain on the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.43%.

Prior to today's trading, shares of the firearm maker had gained 20.08% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.84% and the S&P 500's gain of 3.86% in that time.

Wall Street will be looking for positivity from SWBI as it approaches its next earnings report date. On that day, SWBI is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 530.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $264.70 million, up 58.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $961.20 million. These totals would mark changes of +298.78% and +41.69%, respectively, from last year.

Any recent changes to analyst estimates for SWBI should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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.

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 remained stagnant. SWBI is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, SWBI is holding a Forward P/E ratio of 6.33. This represents a discount compared to its industry's average Forward P/E of 15.74.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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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