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Vista Outdoor (VSTO) Gains But Lags Market: What You Should Know

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In the latest trading session, Vista Outdoor (VSTO - Free Report) closed at $32.16, marking a +0.5% move from the previous day. This move lagged the S&P 500's daily gain of 0.93%.

Prior to today's trading, shares of the maker of firearms, ammunition and accessories had gained 0.06% over the past month. This has outpaced the Consumer Discretionary sector's loss of 7.94% and lagged the S&P 500's gain of 5.84% in that time.

Wall Street will be looking for positivity from VSTO as it approaches its next earnings report date. This is expected to be May 6, 2021. In that report, analysts expect VSTO to post earnings of $0.64 per share. This would mark year-over-year growth of 481.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $530.79 million, up 24.51% from the year-ago period.

It is also important to note the recent changes to analyst estimates for VSTO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.55% higher. VSTO is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that VSTO has a Forward P/E ratio of 12 right now. Its industry sports an average Forward P/E of 15.39, so we one might conclude that VSTO 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 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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