Academy Sports: Store Growth And Margins Power A Q3 Beat (Rating Upgrade)
Summarize this article with:
Seeking Profits5.11K FollowersFollow5ShareSavePlay(9min)CommentsSummaryAcademy Sports and Outdoors is upgraded to 'buy' following a strong Q3 earnings beat and resilient margin performance.ASO's aggressive store expansion drives revenue growth, with 25 new stores expected this year and at least 22 next year.Gross margins rose to 35.7% despite tariff pressures, while temporary SG&A and inventory increases are tied to new store openings.A solid balance sheet, robust free cash flow, and ongoing buybacks support a 12-month price target of ~$60, implying 14% upside. Olga Yastremska/iStock via Getty Images Shares of Academy Sports and Outdoors (ASO) have been a modest performer over the past year, gaining just about 5%. However, investors received good news on Tuesday when the company reported stronger Q3 earnings results, sending theThis article was written bySeeking Profits5.11K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You