Last Updated: 18 Sep 2024
Executive Summary
Academy Sports Outdoors (ASO) is a leading retailer of sporting goods and outdoor recreational products in the United States. The company has a strong financial position with a market capitalization of $4.18 billion, EBITDA of $749.85 million, and a trailing PE ratio of 9.23. ASO's stock price has recently declined to $61.05, but analysts remain bullish on the company's long-term prospects, with a consensus analyst target price of $64.41.
Company Overview
Academy Sports Outdoors was founded in 1938 and is headquartered in Katy, Texas. The company operates over 250 stores in 16 states across the southern and southeastern United States. ASO offers a wide range of products, including sporting goods, outdoor equipment, and apparel. The company's target market is value-conscious consumers who are looking for quality products at affordable prices.
Fundamental Analysis
ASO's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.5% over the past five years. ASO's profit margin has also improved in recent years, reaching 7.98% in the most recent fiscal year. The company's strong financial performance is supported by its loyal customer base and its efficient operations.
Technical Analysis
ASO's stock price has been in a downtrend since early 2023. The stock price recently broke below its 200-day moving average, which is a technical indicator that suggests that the stock is in a bear market. However, ASO's stock price is still above its 50-day moving average, which suggests that the stock could be oversold.
Short Term Outlook
In the short term, ASO's stock price could continue to decline. The stock is currently trading below its 200-day moving average, and the overall market sentiment is negative. However, ASO's strong financial performance could provide support for the stock price.
Long Term Outlook
In the long term, ASO's stock price is expected to rise. The company has a strong financial position, a loyal customer base, and a growing market. ASO is also well-positioned to benefit from the growing trend of outdoor recreation.
Analyst Recommendations
Analysts are bullish on ASO's long-term prospects. The consensus analyst target price is $64.41, which represents a potential upside of 5.5% from the current stock price. Five analysts have a Strong Buy rating on ASO, six have a Buy rating, and eight have a Hold rating.
