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Here's Why You Should Grab Johnson Outdoors (JOUT) Stock Now
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Shares of Johnson Outdoors Inc. (JOUT - Free Report) have surged 67.5% year to date, substantially outperforming the 0.3% decline of its industry. We believe higher earnings growth, given improving market conditions, is likely to aid the stock in maintaining its solid performance in the quarters ahead.
Also, the Zacks Consensus Estimate for the current quarter has moved up from breakeven level to earnings of 2 cents per share over the past two months. Meanwhile, current-year estimates have also jumped 23.1% in the same time frame, from earnings of $2.84 to $3.50 per share. These revisions substantiate Johnson Outdoors’ Zacks Rank #1 (Strong Buy).
What Makes Johnson Outdoors a Solid Pick?
Solid Estimated Sales & EPS Growth: Johnson Outdoors’ current-year revenues are expected to grow 10.9% year over year, outpacing the industry’s average projected growth of 7.5%.
Solid top-line growth is likely to translate into robust bottom-line performance as the company’s projected EPS growth is a whopping 100%, compared to the industry’s average of 21.1%.
Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) for the company in question.
VGM Score: Johnsoon Outdoors has a VGM Score of B. Our VGM Score identifies stocks that have the most attractive value, growth and momentum characteristics. In fact, our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) make solid investment choices.
Debt-free Stock: It is to be noted that Johnson Outdoors currently has no long-term debt on its Balance Sheet. The company has paid off all its long-term debt in the last reported quarter and currently has a debt-equity ratio of 0, compared to the industry’s average of 0.2.
Favorable Consumer Spending Environment: Recent data on jobs, income, inflation and economic growth reveal that consumers are currently in a favorable position, raising chances of increased spending. In fact, the commerce department stated that annual GDP rose 3% in second-quarter 2017, marking the best growth in the last three years. This uptick was supported by robust consumption gains of 3.3%.
Moreover, the positives from the economic data were reflected in Consumer Confidence, which reached the second-highest level in August since late 2000.
In fact, given the favorable background, consumers are currently willing to spend on discretionary items like durable goods, apparel, entertainment and leisure, and automobiles that bode well with recreation companies like Johnson Outdoors.
Markedly, the Zacks Consumer Discretionary sector carries a sector rank of #4 (out of 16), thus placing it among the top 25% of all Zacks classified sectors.
Key Picks
Some other top-ranked stocks in the industry include Malibu Boats, Inc. (MBUU - Free Report) , Town Sports International Holdings, Inc. and Callaway Golf Company . While Malibu Boats sports the same bullish rank as Johnson Outdoors, Town Sports International and Callaway Golf flaunt a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Malibu Boats, Town Sports International and Callaway Golf pulled off an average positive earnings surprise of 6.01%, 52.48% and 23.29%, respectively.
4 Promising Stock Picks to Keep an Eye On
With news stories about computer hacking and identity theft becoming increasingly commonplace, the cybersecurity industry looks like a promising investment opportunity. But which stocks should you buy? Zacks just released Cybersecurity: An Investor’s Guide to Locking Down Profits to help answer this question.
This new Special Report gives you the information you need to make well-informed investment choices in this space. More importantly, it also highlights 4 cybersecurity picks with strong profit potential.
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Here's Why You Should Grab Johnson Outdoors (JOUT) Stock Now
Shares of Johnson Outdoors Inc. (JOUT - Free Report) have surged 67.5% year to date, substantially outperforming the 0.3% decline of its industry. We believe higher earnings growth, given improving market conditions, is likely to aid the stock in maintaining its solid performance in the quarters ahead.
Also, the Zacks Consensus Estimate for the current quarter has moved up from breakeven level to earnings of 2 cents per share over the past two months. Meanwhile, current-year estimates have also jumped 23.1% in the same time frame, from earnings of $2.84 to $3.50 per share. These revisions substantiate Johnson Outdoors’ Zacks Rank #1 (Strong Buy).
What Makes Johnson Outdoors a Solid Pick?
Solid Estimated Sales & EPS Growth: Johnson Outdoors’ current-year revenues are expected to grow 10.9% year over year, outpacing the industry’s average projected growth of 7.5%.
Solid top-line growth is likely to translate into robust bottom-line performance as the company’s projected EPS growth is a whopping 100%, compared to the industry’s average of 21.1%.
Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) for the company in question.
VGM Score: Johnsoon Outdoors has a VGM Score of B. Our VGM Score identifies stocks that have the most attractive value, growth and momentum characteristics. In fact, our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) make solid investment choices.
Debt-free Stock: It is to be noted that Johnson Outdoors currently has no long-term debt on its Balance Sheet. The company has paid off all its long-term debt in the last reported quarter and currently has a debt-equity ratio of 0, compared to the industry’s average of 0.2.
Favorable Consumer Spending Environment: Recent data on jobs, income, inflation and economic growth reveal that consumers are currently in a favorable position, raising chances of increased spending. In fact, the commerce department stated that annual GDP rose 3% in second-quarter 2017, marking the best growth in the last three years. This uptick was supported by robust consumption gains of 3.3%.
Moreover, the positives from the economic data were reflected in Consumer Confidence, which reached the second-highest level in August since late 2000.
In fact, given the favorable background, consumers are currently willing to spend on discretionary items like durable goods, apparel, entertainment and leisure, and automobiles that bode well with recreation companies like Johnson Outdoors.
Markedly, the Zacks Consumer Discretionary sector carries a sector rank of #4 (out of 16), thus placing it among the top 25% of all Zacks classified sectors.
Key Picks
Some other top-ranked stocks in the industry include Malibu Boats, Inc. (MBUU - Free Report) , Town Sports International Holdings, Inc. and Callaway Golf Company . While Malibu Boats sports the same bullish rank as Johnson Outdoors, Town Sports International and Callaway Golf flaunt a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Malibu Boats, Town Sports International and Callaway Golf pulled off an average positive earnings surprise of 6.01%, 52.48% and 23.29%, respectively.
4 Promising Stock Picks to Keep an Eye On
With news stories about computer hacking and identity theft becoming increasingly commonplace, the cybersecurity industry looks like a promising investment opportunity. But which stocks should you buy? Zacks just released Cybersecurity: An Investor’s Guide to Locking Down Profits to help answer this question.
This new Special Report gives you the information you need to make well-informed investment choices in this space. More importantly, it also highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide now>>