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Vista Outdoor (VSTO) Gains As Market Dips: What You Should Know

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Vista Outdoor (VSTO - Free Report) closed at $37 in the latest trading session, marking a +0.52% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.64%.

Heading into today, shares of the maker of firearms, ammunition and accessories had lost 3.36% over the past month, lagging the Consumer Discretionary sector's loss of 1.85% and the S&P 500's gain of 0.17% in that time.

Vista Outdoor will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2022. On that day, Vista Outdoor is projected to report earnings of $1.81 per share, which would represent year-over-year growth of 77.45%. Our most recent consensus estimate is calling for quarterly revenue of $764.63 million, up 28.18% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Vista Outdoor. 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.

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.

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. Within the past 30 days, our consensus EPS projection has moved 1.58% lower. Vista Outdoor is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Vista Outdoor is holding a Forward P/E ratio of 5.52. For comparison, its industry has an average Forward P/E of 8.26, which means Vista Outdoor is trading at a discount to the group.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.

To follow VSTO in the coming trading sessions, be sure to utilize Zacks.com.


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