Back to top

Image: Bigstock

Sportsman's Warehouse (SPWH) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Sportsman's Warehouse (SPWH - Free Report) closed the most recent trading day at $16.09, moving -1.71% from the previous trading session. This change lagged the S&P 500's 0.77% gain on the day. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 1.49%.

Prior to today's trading, shares of the outdoor sporting goods specialty retailer had gained 15.61% over the past month. This has outpaced the Retail-Wholesale sector's gain of 9.49% and the S&P 500's gain of 5.03% in that time.

SPWH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.27, up 107.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $283.85 million, up 34.04% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.81 per share and revenue of $1.10 billion. These totals would mark changes of +72.34% and +23.63%, respectively, from last year.

Any recent changes to analyst estimates for SPWH should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 2.11% higher. SPWH is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that SPWH has a Forward P/E ratio of 20.29 right now. Its industry sports an average Forward P/E of 33.98, so we one might conclude that SPWH is trading at a discount comparatively.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 9% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Sportsmans Warehouse Holdings, Inc. (SPWH) - free report >>

Published in