Stockchase Opinions

The Panic-Proof Portfolio (Stockchase Research) Academy Sports and Outdoors ASO-Q TOP PICK Jul 12, 2022

Stockchase Research Editor: Michael O'Reilly This US regional sports and outdoor activity retailer has plans to open 80-100 stores over the next five years and has found ways to make itself the highest productivity per store company in its peer group. Recently reported earnings beat expectations by 22% and support a stellar ROE of 47%. It trades at under 6x earnings, compared to peers at 14x. It has been using some cash reserves to prudently retire debt and aggressively buy back shares. We recommend a stop loss at $26.50, looking to achieve $55.00 -- upside potential over 45%. Yield 0% (Analysts’ price target is $55.08)
$38.360

Stock price when the opinion was issued

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 20/22, Up 42.6%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with ASO has achieved its target at $64.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $44) to $56.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 20/22, Up 39.4%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ASO is progressing well.  We now recommend trailing up the stop (from $56) to $59 at this time.  

BUY

Shares are cheap here and executing better than Dick's Sporting Goods. Sporting goods hold up better in a recession than broad retail. Excellent managers.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 20/22, Up 17.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ASO has triggered its stop at $59.  To remain disciplined we recommend covering the position at this time.  This will result in a net investment gain of 30%, when combined with our previous buy recommendations.  

WEAK BUY

Is very cheap, but also since the spring. The stock has done little very little. You can stwart buying it here, but not whole hog, because the stock is getting clubbed.

PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ASO is cheap at 7.7x forward earnings, however, results have been lagging year-to-date down 22%  driven by a weak first quarter. ASO is also flat over the prior twelve months. The company has displayed a declining sales trend over the last few years. There are some marketing initiatives that the company is engaged in that could help drive sales in the latter half of the year, but the first quarter was quite weak. Debt has come down nicely over the last few years and while not low, it appears to be more managable now. We are not overly intrigued by ASO, but it is cheap and does pay a small dividend which gives it some appeal. In an upward sales cycle it could do better but the recent weakness shows otherwise. 
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

ASO is a retailer of outdoor sporting goods in the US.  It trades at 8x earnings, under 2x book and supports a 25% ROE.  The company just announced a large share buyback program, while recent earnings show cash reserves growing as debt is retired and shares bought back.  We recommend setting a stop-loss at $37, looking to achieve $61 -- upside potential over 21%.  Yield 0.8%

(Analysts’ price target is $61.21)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 05/24, Up 23.2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ASO has achieved its objective at $61.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $37) to $45.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate this outdoor sports retailer as a TOP PICK.  Recently reported earnings, showed a 68% increase in free cash flow.  It trades at 9x earnings, under 2x book and supports a 24% ROE.  We like that cash reserves continue to grow as the company aggressively buys back shares and retires debt.  We recommend trailing up the stop (from $45) to $47, looking to achieve $63 -- upside potential of 17%.  Yield 0.7%

(Analysts’ price target is $62.79)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Feb 13/25, Down 12.3%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with ASO has triggered its stop at $47.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous guidance, this will result in a net investment loss of 10%.