This sporting goods stock is a boon for retail investors

Why investing in ASO is like walking in the park

Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is an American sporting and outdoor recreation retailer with 259 stores in 16 states. ASO offers a product assortment that focuses on the key outdoor, apparel, footwear and sports & leisure categories through leading national brands and a portfolio of 20 private label brands.

Academy Sports and Outdoors stock price is up around 21% year-on-year and ASO is currently trading up 31% since its 52-week low of $28.39 hit last April. However, ASO’s share price is down 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% decline in profits and a 0.6% decline in revenue for fiscal 2023. Still, the stock valuation of Academy Sports and Outdoors is very attractive, even if the company should post negative figures. ASO is trading at an extremely low forward price-to-earnings ratio of 4.75 and a cheap price-to-sell ratio of 0.53.

Academy Sports and Outdoors has also managed to produce impressive numbers and consistent growth in recent years, increasing annual revenue by 42% over the past 3 years. Most notably, the sporting goods company increased its annual net income from $21.4 million in fiscal 2019 to $671.3 million in fiscal 2021, indicating a massive increase in 3031%.

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

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