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American Outdoor Brands, Inc. (AOUT) Moves 5.3% Higher: Will This Strength Last?

American Outdoor Brands, Inc. (AOUT) shares rallied 5.3% in the last trading session to close at $7.53. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% loss over the past four weeks.

American Outdoor Brands’ rally is buoyed by optimism regarding the company’s strength in innovation, new product pipeline and direct-to-consumer business. Also, continued expansion of domestic & international sales teams and strong balance sheet bode well.

This company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of -214.3%. Revenues are expected to be $38.95 million, down 15.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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For American Outdoor Brands, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AOUT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

American Outdoor Brands, Inc. is a member of the Zacks Leisure and Recreation Products industry. One other stock in the same industry, Vista Outdoor (VSTO), finished the last trading session 4% higher at $27.25. VSTO has returned -6.2% over the past month.

For Vista Outdoor , the consensus EPS estimate for the upcoming report has changed -18.5% over the past month to $0.97. This represents a change of -58% from what the company reported a year ago. Vista Outdoor currently has a Zacks Rank of #3 (Hold).

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American Outdoor Brands, Inc. (AOUT) : Free Stock Analysis Report

Vista Outdoor Inc. (VSTO) : Free Stock Analysis Report

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