Are Investors Currently Undervaluing Academy Sports and Outdoors, Inc. (ASO)?


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While the proven Zacks Rank emphasizes earnings estimates and revisions of estimates to find solid stocks, we also know that investors tend to develop their own individual strategies. With that in mind, we always look at trends in value, growth, and momentum to uncover great companies.

– Zack

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use proven metrics and fundamental analysis to find companies they believe are undervalued at their current stock price level.

Fortunately, Zacks has developed their own style scoring system with the aim of finding stocks with specific characteristics. Value investors will be interested in the “Value” category of the system. Stocks with both an “A” rating in the Value category and high Zacks ranks are some of the most profitable stocks on the market right now.

One company to watch right now is Academy Sports and Outdoors, Inc. (ASO). ASO currently sports a Zacks rank of 2 (Buy), as well as an A rating for value. The stock is currently trading with a P / E ratio of 10.15. By comparison, its industry has an average P / E of 25.10. ASO’s forward P / E hit 11.74 and as low as 7.30, with a median of 9.38, all in the past year.

Another notable valuation metric for ASO is its P / N ratio of 3.16. The P / B ratio pits the market value of a stock against its book value, which is defined as total assets minus total liabilities. This stock’s P / B looks attractive compared to its industry’s average P / B of 6.54. ASO’s P / B has been as high as 3.16 and as low as 1.35, with a median of 2.42, over the past year.

These are just a few of the key metrics included in Academy Sports and Outdoors, Inc.’s strong Value rating, but they help show that the stock is likely undervalued right now. Considering the strength of its earnings outlook, ASO currently looks like an impressive value stock.

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