Academy Sports and Outdoors (ASO-Q)

(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%.  

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)

(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.

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)

(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.  

(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.  

(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.

Stockchase Research Editor: Michael O'Reilly We again reiterate ASO, a US regional sports and outdoor activity retailer, as a TOP PICK. Recently reported earnings beat analyst expectations, supporting a ROE of 40% and management has now raised earnings guidance above analyst forecasts. Its E-commerce sales are just getting going as sales were up 30% over pre-pandemic levels. It trades at under 8x earnings, compared to peers at 12x. We recommend trailing up the stop-loss (from $40) to $44, looking to achieve $64.00 -- upside potential over 20%. Yield 0.5% (Analysts’ price target is $64.36)

Stockchase Research Editor: Michael O'Reilly We again reiterate ASO, a US regional sports and outdoor activity retailer, as a TOP PICK. E-commerce sales are just getting going with lots of runway ahead for growth. Recently reported earnings beat expectations by 10% and support a stellar ROE of 44%. It trades at under 7x earnings, compared to peers at 9x. It has been using modest cash reserves to buy back shares. We recommend keeping the stop-loss at $40, looking to achieve $59.00 -- upside potential over 28%. Yield 0.66% (Analysts’ price target is $59.09)

(A Top Pick Aug 23/22, Up 3.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK is progressing well. We now recommend trailing up the stop (from $35) to $40.

Stockchase Research Editor: Michael O'Reilly We reiterate this US regional sports and outdoor activity retailer, who has plans to open 80-100 stores over the next five years, as a TOP PICK. The company continues to find 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 7x earnings, compared to peers at 11x. It has been using modest cash reserves to buy back shares. We recommend trailing the stop loss (from $26.50) to $35.00, looking to achieve $55.00 -- upside potential over 17%. Yield 0.64% (Analysts’ price target is $54.69)

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)