U.S. markets closed
  • S&P 500

    4,210.24
    +87.77 (+2.13%)
     
  • Dow 30

    33,309.51
    +535.11 (+1.63%)
     
  • Nasdaq

    12,854.80
    +360.88 (+2.89%)
     
  • Russell 2000

    1,969.25
    +56.36 (+2.95%)
     
  • Crude Oil

    91.49
    -0.44 (-0.48%)
     
  • Gold

    1,806.70
    -7.00 (-0.39%)
     
  • Silver

    20.55
    -0.20 (-0.95%)
     
  • EUR/USD

    1.0302
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    2.7860
    -0.0110 (-0.39%)
     
  • GBP/USD

    1.2214
    -0.0004 (-0.04%)
     
  • USD/JPY

    132.8620
    -0.0110 (-0.01%)
     
  • BTC-USD

    23,917.15
    +714.13 (+3.08%)
     
  • CMC Crypto 200

    559.85
    +28.63 (+5.39%)
     
  • FTSE 100

    7,507.11
    +18.96 (+0.25%)
     
  • Nikkei 225

    27,819.33
    -180.63 (-0.65%)
     

Should Value Investors Buy Academy Sports and Outdoors (ASO) Stock?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Academy Sports and Outdoors (ASO). ASO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors should also note that ASO holds a PEG ratio of 0.29. 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. ASO's industry has an average PEG of 0.48 right now. Over the last 12 months, ASO's PEG has been as high as 2.53 and as low as 0.26, with a median of 0.54.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASO has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.2.

Another great Leisure and Recreation Products stock you could consider is Sturm, Ruger & Company (RGR), which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Sturm, Ruger & Company has a P/B ratio of 3.09 while its industry's price-to-book ratio sits at 6.41. For RGR, this valuation metric has been as high as 5.30, as low as 2.94, with a median of 3.77 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Academy Sports and Outdoors and Sturm, Ruger & Company are likely undervalued currently. And when considering the strength of its earnings outlook, ASO and RGR sticks out as one of the market's strongest value stocks.


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
 
Academy Sports and Outdoors, Inc. (ASO) : Free Stock Analysis Report
 
Sturm, Ruger & Company, Inc. (RGR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research