This Sporting Goods Stock is a Bargain for Retail Investors

ASO has decreased by 16% since the start of this year

Apr 7, 2022 at 11:55 AM

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is a full-line sporting goods and outdoor recreation retailers in the United States with 259 stores across 16 states. ASO offers a product assortment that focuses on key categories of outdoor, apparel, footwear, and sports & recreation through both leading national brands and a portfolio of 20 private label brands.

Academy Sports and Outdoors stock has increased about 21% in price year-over-year and ASO is currently trading up 31% since its 52-week low of $28.39 reached last April. However, shares of ASO have decreased in price 16% year-to-date and Academy Sports and Outdoors stock is currently down 27% from the retail company's all-time high of $51.08 reached in November.

The sporting goods company is estimated to see a 7.8% decrease in earnings and a 0.6% drop in revenues for fiscal 2023. Still, Academy Sports and Outdoors stock's valuation is very attractive even though the business is expected to report negative figures. ASO trades at an extremely low forward price-earnings ratio of 4.75 and a cheap price-sales ratio of 0.53.

Academy Sports and Outdoors has also managed to produce impressive figures and consistent growth in recent years, increasing their annual revenues by 42% over the past 3 years. More notably, the sporting goods company grew their annual net income from $21.4 million in fiscal 2019 to $671.3 million in fiscal 2021, indicating a massive 3,031% increase.

ASO is also expected to resume their growth for fiscal 2024 with 8.8% estimated earnings growth and 5.5% estimated revenue growth. Moreover, Academy Sports and Outdoors offers a dividend yield of 0.78% with a forward dividend of $0.30, further making ASO a good option for value investors looking to invest long-term.

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