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American Outdoor Brands (SWBI) Gains As Market Dips: What You Should Know

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American Outdoor Brands (SWBI - Free Report) closed at $17.87 in the latest trading session, marking a +0.17% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq gained 0.09%.

Coming into today, shares of the firearm maker had lost 0.72% in the past month. In that same time, the Consumer Discretionary sector gained 3.24%, while the S&P 500 gained 4.43%.

Investors will be hoping for strength from SWBI as it approaches its next earnings release. The company is expected to report EPS of $0.82, up 530.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $264.70 million, up 58.79% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $961.20 million. These totals would mark changes of +298.78% and +41.69%, respectively, from last year.

Any recent changes to analyst estimates for SWBI 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SWBI is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, SWBI is holding a Forward P/E ratio of 5.46. Its industry sports an average Forward P/E of 15.31, so we one might conclude that SWBI is trading at a discount comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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