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AMMO, Inc. (POWW) Stock Sinks As Market Gains: What You Should Know

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AMMO, Inc. (POWW - Free Report) closed at $6.13 in the latest trading session, marking a -1.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%.

Coming into today, shares of the company had lost 16.33% in the past month. In that same time, the Consumer Discretionary sector lost 0.92%, while the S&P 500 lost 1.87%.

Investors will be hoping for strength from POWW as it approaches its next earnings release. The company is expected to report EPS of $0.10, up 300% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $52.6 million, up 337.97% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.42 per share and revenue of $217.4 million. These totals would mark changes of +500% and +247.88%, respectively, from last year.

Any recent changes to analyst estimates for POWW 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. 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. POWW is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, POWW is holding a Forward P/E ratio of 14.76. For comparison, its industry has an average Forward P/E of 10.34, which means POWW is trading at a premium to the group.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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