Can This Sporting Goods Stock Deliver Grand Slam Profits?

ASO sports a whopping 213.1% year-over-year lead

facebook twitter linkedin

The shares of Academy Sports and Outdoors, Inc. (NASDAQ:ASO) are up 1.5% at $40.78 at last check, though a reason for today's price action was not immediately clear. While the equity has been cooling down from a Sept. 15, all-time high of $47.65 over the last few weeks, the stock has been in rally mode since going public in October 2020 with an initial public offering (IPO) price of $13, save for a brief pullback period in July and August. Year-over-year, ASO sports a whopping 213.1% lead. 

Despite its impressive chart performance, short sellers have been piling on the security. Short interest jumped 13.5% over the most recent reporting period, and the 10.97 million shares sold short make up a significant 13.3% of the stock's available float, or nearly one week's worth of pent-up buying power. Should some of that pessimism begin to unwind, ASO could surge even higher. 

Now looks like a great time to weigh in on Academy Sports and Outdoors stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 52% sits higher than only 3% of readings from the past year. In simpler terms, the options market is pricing in low volatility expectations for the equity right now. 

From a fundamental point of view, the security boasts an impressive valuation. ASO is  now trading at price-earnings ratio of 7.24, and has a forward price-earnings ratio of 7.11.

Moreover, the company has maintained solid top- and bottom-line growth, increasing revenues and net income 30% and 787%, respectively, since 2018. On the other hand, the sporting goods name does not carry the strongest balance sheet, with $554 million in cash, as opposed to roughly $2 billion in total debt. Nonetheless, ASO remains a great long-term investment opportunity.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners