Is It Time To Consider Buying Academy Sports and Outdoors, Inc. (NASDAQ:ASO)?

Academy Sports and Outdoors, Inc. (NASDAQ:ASO), is not the largest company out there, but it saw a decent share price growth of 14% on the NASDAQGS over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Academy Sports and Outdoors’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Academy Sports and Outdoors

Is Academy Sports and Outdoors Still Cheap?

Great news for investors – Academy Sports and Outdoors is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $78.49, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Academy Sports and Outdoors’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Academy Sports and Outdoors look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 8.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Academy Sports and Outdoors, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ASO is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ASO for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ASO. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Academy Sports and Outdoors, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.