Are Investors Undervaluing Academy Sports and Outdoors, Inc. (ASO) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Academy Sports and Outdoors, Inc. (ASO). ASO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.15 right now. For comparison, its industry sports an average P/E of 25.10. ASO's Forward P/E has been as high as 11.74 and as low as 7.30, with a median of 9.38, all within the past year.
Another notable valuation metric for ASO is its P/B ratio of 3.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against 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 only a few of the key metrics included in Academy Sports and Outdoors, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ASO looks like an impressive value stock at the moment.
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