ASO Stock Recent News

The Leisure and Recreation Products industry faces challenges due to an uncertain economy. However, stocks like ASO, PTON and PLBY are likely to defy the headwinds.

Investors are always on the lookout for the next Amazon or Nvidia, a stock you can find before the market catches on and sends it soaring. Today, investors may see the greatest opportunities in artificial intelligence (AI).

If you invested $10,000 in warehouse-style retailer Costco Wholesale (COST -0.70%) in 1990, you'd have over $400,000 today. Simply put, Costco stock was a life-changing investment for some investors thanks to its incredibly consistent performance.

I rate ASO a buy due to gross margin expansion, store growth, adoption by higher-earners, supporting free cash flow growth, and maintaining capital returns through repurchases. ASO's valuation is attractive at 11.4x TTM P/FCF, with reported cash flow depressed by growth investments and strategic inventory build, making shares look cheap. Brand expansion, especially the Jordan launch, and increasing penetration among $100k+ earners, position ASO for comp sales improvement and new store success when the macrocycle turns.

I rate ASO as Hold, due to near-term uncertainties, despite strong execution on store expansion and premium brand partnerships. Positive trends include successful new store openings, traction with higher-income customers, and a promising Nike Jordan launch boosting brand profile. Key concerns are declining traffic from core lower-income shoppers, volatile sales trends, and elevated inventory risking future markdowns.

ASO is a compelling buy, offering strong free cash flow, a pristine balance sheet, and effective tariff mitigation despite sector headwinds. Recent guidance is encouraging, with EPS and free cash flow outlooks maintained or improved, reflecting successful inventory and cost management. Expansion outside its Southern hub and competitor distractions create a unique window for ASO to gain market share and grow brand partnerships.

Truist Securities analyst Joseph Civello reiterated the Hold rating on Academy Sports and Outdoors, Inc. ASO, raising the price forecast from $45 to $47.

Academy Sports and Outdoors, Inc. ASO reported downbeat first-quarter results on Tuesday.

Academy Sports and Outdoors, Inc. (NASDAQ:ASO ) Q1 2025 Earnings Conference Call June 10, 2025 10:00 AM ET Company Participants Dan A. Aldridge - Vice President of Investor Relations Earl Carlton Ford - Executive VP & CFO Steven Paul Lawrence - CEO & Director Conference Call Participants Anthony Chinonye Chukumba - Loop Capital Markets LLC, Research Division Emily Ghosh - Goldman Sachs Group, Inc., Research Division Gregory Scott Melich - Evercore ISI Institutional Equities, Research Division John Edward Heinbockel - Guggenheim Securities, LLC, Research Division Jolie Bess Wasserman - JPMorgan Chase & Co, Research Division Jonathan Richard Matuszewski - Jefferies LLC, Research Division Michael Lasser - UBS Investment Bank, Research Division Pedro Gil Garcia Alejo - Morgan Stanley, Research Division Robert Frederick Ohmes - BofA Securities, Research Division Operator Good morning, and welcome to the Academy Sports and Outdoors First Quarter Fiscal 2025 Results Conference Call.

While the top- and bottom-line numbers for Academy Sports and Outdoors (ASO) give a sense of how the business performed in the quarter ended April 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.