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Academy Sports and Outdoors, Inc. (ASO) Gains But Lags Market: What You Should Know

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In the latest trading session, Academy Sports and Outdoors, Inc. (ASO - Free Report) closed at $46.17, marking a +0.3% move from the previous day. This change lagged the S&P 500's 1.32% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq lost 0.15%.

Prior to today's trading, shares of the company had gained 7.6% over the past month. This has outpaced the Consumer Discretionary sector's loss of 4.8% and the S&P 500's gain of 3.61% in that time.

Wall Street will be looking for positivity from Academy Sports and Outdoors, Inc. as it approaches its next earnings report date. This is expected to be December 10, 2021. In that report, analysts expect Academy Sports and Outdoors, Inc. to post earnings of $1.09 per share. This would mark year-over-year growth of 19.78%. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, up 10.31% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.36 per share and revenue of $6.58 billion. These totals would mark changes of +66.06% and +15.63%, respectively, from last year.

Any recent changes to analyst estimates for Academy Sports and Outdoors, Inc. should also be noted by investors. 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.

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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Academy Sports and Outdoors, Inc. is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Academy Sports and Outdoors, Inc. currently has a Forward P/E ratio of 7.24. For comparison, its industry has an average Forward P/E of 11.54, which means Academy Sports and Outdoors, Inc. is trading at a discount to the group.

It is also worth noting that ASO currently has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Products was holding an average PEG ratio of 2.46 at yesterday's closing price.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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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