Academy Sports and Outdoors, Inc. (ASO) Stock Sinks As Market Gains: What You Should Know

·3 min read

Academy Sports and Outdoors, Inc. (ASO) closed the most recent trading day at $47.25, moving -0.8% from the previous trading session. This change lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq gained 0.09%.

Coming into today, shares of the company had gained 11.03% in the past month. In that same time, the Consumer Discretionary sector gained 11.09%, while the S&P 500 gained 10.76%.

Academy Sports and Outdoors, Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.10, down 10.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.71 billion, down 4.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.01 per share and revenue of $6.59 billion. These totals would mark changes of -7.76% and -2.71%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Academy Sports and Outdoors, Inc.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. 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 0.5% lower. Academy Sports and Outdoors, Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Academy Sports and Outdoors, Inc. is currently trading at a Forward P/E ratio of 6.8. Its industry sports an average Forward P/E of 8.6, so we one might conclude that Academy Sports and Outdoors, Inc. is trading at a discount comparatively.

Also, we should mention that ASO has a PEG ratio of 0.74. 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 1.17 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 170, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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