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Vista Outdoor (VSTO) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

Vista Outdoor (VSTO) closed at $38.19 in the latest trading session, marking a -1.98% move from the prior day. This move lagged the S&P 500's daily loss of 1.89%. Elsewhere, the Dow lost 1.3%, while the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the maker of firearms, ammunition and accessories had lost 5.32% in the past month. In that same time, the Consumer Discretionary sector lost 3.32%, while the S&P 500 lost 1.79%.

Vista Outdoor will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. The company is expected to report EPS of $1.88, up 82.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $750.2 million, up 30.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.86 per share and revenue of $2.94 billion, which would represent changes of +114.75% and +32.27%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Vista Outdoor. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. Vista Outdoor is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Vista Outdoor is holding a Forward P/E ratio of 4.96. Its industry sports an average Forward P/E of 9.46, so we one might conclude that Vista Outdoor is trading at a discount comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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