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

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Academy Sports and Outdoors, Inc. (ASO - Free Report) closed the most recent trading day at $41.92, moving +1.6% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 1.87%, and the Nasdaq, a tech-heavy index, added 0.62%.

Heading into today, shares of the company had lost 10.27% over the past month, lagging the Consumer Discretionary sector's loss of 8.83% and the S&P 500's loss of 2.46% in that time.

Investors will be hoping for strength from Academy Sports and Outdoors, Inc. as it approaches its next earnings release, which is expected to be December 10, 2021. In that report, analysts expect Academy Sports and Outdoors, Inc. to post earnings of $1.16 per share. This would mark year-over-year growth of 27.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.5 billion, up 11.36% from the year-ago period.

ASO's full-year Zacks Consensus Estimates are calling for earnings of $6.44 per share and revenue of $6.61 billion. These results would represent year-over-year changes of +68.15% and +16.12%, respectively.

Investors might also notice recent changes to analyst estimates for Academy Sports and Outdoors, Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.71% higher within the past month. Academy Sports and Outdoors, Inc. is currently a Zacks Rank #3 (Hold).

Investors should also note Academy Sports and Outdoors, Inc.'s current valuation metrics, including its Forward P/E ratio of 6.4. This represents a discount compared to its industry's average Forward P/E of 9.88.

Meanwhile, ASO's PEG ratio is currently 0.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASO's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.

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