Why investing in ASO is like a walk in the park
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is a full-line sporting goods and outdoor recreation retailer in the United States with 259 stores in 16 states. ASO offers a range of products focused on the key categories Outdoor, Apparel, Footwear and Sport & Leisure, through both leading national brands and a portfolio of 20 private labels.
Academy Sports and Outdoors stock is up about 21% in price year over year, and ASO is currently trading 31% higher since hitting the 52-week low of $28.39 last April. However, shares of ASO are down 16% year-to-date, and Academy Sports and Outdoors stock is currently 27% below the retailer’s all-time high of $51.08 set in November.
The sporting goods company is expected to report a 7.8% drop in profit and a 0.6% drop in revenue for fiscal 2023. Still, Academy Sports and Outdoors’ stock valuation is very attractive, even though the company is expected to report negative numbers. ASO is trading at an extremely low price-to-earnings ratio of 4.75 and a cheap price-to-sales ratio of 0.53.
Academy Sports and Outdoors has also managed to show impressive numbers and consistent growth over the last few years, growing its annual sales by 42% over the last 3 years. Notably, the sporting goods company grew its annual net income from $21.4 million in fiscal 2019 to $671.3 million in fiscal 2021, a massive 3,031% increase.
ASO is also expected to resume growth for fiscal 2024 with estimated earnings growth of 8.8% and estimated revenue growth of 5.5%. Additionally, Academy Sports and Outdoors offers a dividend yield of 0.78% with a forward dividend of $0.30, making ASO a good option for value investors looking to invest for the long term.