Academy Sports and Outdoors, Inc. (ASO) Gains But Lags Market: What You Should Know – September 2, 2021

Academy Sports and Outdoors, Inc. (ASO Free Report) closed the most recent trading day at $44.56, moving +0.22% from the previous trading session. The stock lagged the S&P 500’s daily gain of 0.28%.

Heading into today, shares of the company had gained 28.09% over the past month, outpacing the Consumer Discretionary sector’s gain of 3.25% and the S&P 500’s gain of 3.07% in that time.

Investors will be hoping for strength from ASO as it approaches its next earnings release, which is expected to be September 9, 2021.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.74 per share and revenue of $6.25 billion, which would represent changes of +23.76% and +9.9%, respectively, from the prior year.

Any recent changes to analyst estimates for ASO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ASO currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ASO is currently trading at a Forward P/E ratio of 9.38. Its industry sports an average Forward P/E of 11.4, so we one might conclude that ASO is trading at a discount comparatively.

We can also see that ASO currently has a PEG ratio of 2.25. 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 had an average PEG ratio of 2.29 as of yesterday’s close.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.

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