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Vista Outdoor (VSTO) Dips More Than Broader Markets: What You Should Know

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Vista Outdoor (VSTO - Free Report) closed the most recent trading day at $40.78, moving -1.88% from the previous trading session. This move lagged the S&P 500's daily loss of 1.7%.

Prior to today's trading, shares of the maker of firearms, ammunition and accessories had gained 2.49% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.73% and the S&P 500's loss of 0.27% in that time.

VSTO will be looking to display strength as it nears its next earnings release. On that day, VSTO is projected to report earnings of $1.77 per share, which would represent year-over-year growth of 60.91%. Meanwhile, our latest consensus estimate is calling for revenue of $723.34 million, up 25.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.09 per share and revenue of $2.78 billion. These totals would mark changes of +66.39% and +24.75%, respectively, from last year.

Any recent changes to analyst estimates for VSTO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. VSTO is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, VSTO is holding a Forward P/E ratio of 6.83. Its industry sports an average Forward P/E of 10.71, 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 35, which puts it in the top 14% 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.

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