Is Academy Sports and Outdoors, Inc. (ASO) Stock Undervalued Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system’s “Value” category. Stocks with “A” grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Academy Sports and Outdoors, Inc. (ASO). ASO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

ASO is also sporting a PEG ratio of 2.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company’s expected earnings growth rate. ASO’s industry has an average PEG of 2.20 right now. ASO’s PEG has been as high as 3.65 and as low as 2, with a median of 2.52, all within the past year.

Investors should also recognize that ASO has a P/B ratio of 2.85. Investors use the P/B ratio to look at a stock’s market value versus its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks attractive against its industry’s average P/B of 7.10. Over the past year, ASO’s P/B has been as high as 3.04 and as low as 1.35, with a median of 2.31.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Academy Sports and Outdoors, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASO feels like a great value stock at the moment.

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