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Sportsman's Warehouse (SPWH) Dips More Than Broader Markets: What You Should Know

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Sportsman's Warehouse (SPWH - Free Report) closed at $9.64 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's daily loss of 0.09%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.12%.

Coming into today, shares of the outdoor sporting goods specialty retailer had gained 11.59% in the past month. In that same time, the Retail-Wholesale sector gained 6.87%, while the S&P 500 gained 5.55%.

Sportsman's Warehouse will be looking to display strength as it nears its next earnings release, which is expected to be December 7, 2022. The company is expected to report EPS of $0.29, down 43.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $356.19 million, down 11.18% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.15 per share and revenue of $1.43 billion. These totals would mark changes of -33.14% and -4.84%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Sportsman's Warehouse. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sportsman's Warehouse is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Sportsman's Warehouse has a Forward P/E ratio of 8.58 right now. For comparison, its industry has an average Forward P/E of 13.14, which means Sportsman's Warehouse is trading at a discount to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% 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 Zacks.com.


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