August
27, 2021
3 min read
This story originally appeared on ZacksAcademy Sports and Outdoors, Inc. (ASO) closed at $42.19 in the latest trading session, marking a -1.31% move from the prior day. This change lagged the S&P 500’s 0.88% gain on the day.
Coming into today, shares of the company had gained 14.98% in the past month. In that same time, the Consumer Discretionary sector lost 0.36%, while the S&P 500 gained 1.2%.
Wall Street will be looking for positivity from ASO as it approaches its next earnings report date. This is expected to be September 9, 2021.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $6.25 billion. These totals would mark changes of +23.76% and +9.9%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ASO. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ASO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ASO is holding a Forward P/E ratio of 9.02. This valuation marks a discount compared to its industry’s average Forward P/E of 12.08.
We can also see that ASO currently has a PEG ratio of 2.16. 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. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 2.26 based on yesterday’s closing prices.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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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