Bear of the Day: Academy Sports and Outdoors (ASO)

The market has come under pressure in recent days. It can make it very easy for the bears to now look back and give their “I told you so” speeches. Most of them have been watching the whole run, pulling their hair out and screaming at the screen. These Bear of the Day articles are not meant create a bearish story on the broad market. Rather, they are meant to point out earnings trends that investors might not have been aware of. They are trends which are moving in a negative direction, and are single stock stories.

Today’s Bear of the Day is Academy Sports and Outdoors (ASO). Academy Sports and Outdoors, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. 

The company is currently a Zacks Rank #5 (Strong Sell). The reason for the unfavorable ranking is that several analysts have come out and cut their earnings estimates on the company. Six analysts have brought down their numbers for the current year while four have cut next year’s number. The negative moves have dropped our Zacks Consensus Estimate for the current year from $7.59 to $6.93 while next year’s number is down from $8.46 to $7.73.

The Leisure and Recreation Products industry ranks in the Bottom 23% of our Zacks Industry Rank. There is only a single company in that industry which is in the good graces of our Zacks Rank. That is Zacks Rank #2 (Buy) Brunswick (BC). There are several Zacks Rank #3 (Hold) stocks. These include AMMO (AMMO) and Acushnet (GOLF).


 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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