Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) fell short of the market’s revenue expectations in Q2 CY2025 as sales rose 3.3% year on year to $1.6 billion. On the other hand, the company’s full-year revenue guidance of $6.13 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $1.94 per share was 9.1% below analysts’ consensus estimates.
Shares of sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO)
fell 8.5% in the afternoon session after the company reported second-quarter results that missed analyst expectations for both profit and sales.
Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) missed Wall Street’s revenue expectations in Q2 CY2025 as sales rose 3.3% year on year to $1.6 billion. On the other hand, the company’s full-year revenue guidance of $6.13 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $1.94 per share was 9.1% below analysts’ consensus estimates.
ASO stock appears undervalued with a strong P/E ratio, high profitability, and solid financial health, making it a compelling pick for value investors.
A number of stocks fell in the morning session after a hotter-than-expected wholesale inflation report fueled concerns about slowing consumer spending.
A number of stocks jumped in the afternoon session after markets continued to rally amid growing investor optimism for a Federal Reserve interest rate cut in September. This optimism was spurred by a recent Consumer Price Index (CPI) report that did not show runaway inflation, increasing the perceived probability of a rate cut to over 90%. Lower interest rates are generally seen as a positive for the economy as they reduce borrowing costs for consumers, which can stimulate spending on non-essential goods. Consequently, investors bid up shares in the apparel, home furnishings, and automotive retail industries in anticipation of stronger consumer demand.
A number of stocks jumped in the morning session after a tame inflation report boosted investor hopes for an interest rate cut from the Federal Reserve. The latest Consumer Price Index data showed the annual inflation rate held steady at 2.7%, reassuring investors who had feared that tariffs could lead to a spike in consumer prices. This milder-than-expected reading gives the Federal Reserve more flexibility to consider lowering interest rates, possibly as soon as next month. A potential rate cut could reduce borrowing costs for consumers and businesses, stimulating more spending and providing a significant boost for the retail industry. Adding to the optimism, reports of a 90-day tariff truce with China further eased concerns about future price pressures.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Shares of sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO)
jumped 3.9% in the afternoon session after analyst firm Monness Crespi & Hardt initiated coverage on the company with a 'Buy' rating.
A number of stocks fell in the morning session as the broader market tumbled in the morning session after a surprisingly weak U.S. jobs report and the announcement of new, widespread tariffs on imported goods. The U.S. economy added only 73,000 jobs in July, falling far short of the 109,000 forecast. Compounding the issue, job gains for May and June were revised down by a combined 258,000, signaling what some see as “increasing signs of fragility” in the labor market. Simultaneously, the White House announced new tariffs, ranging from 10% to 41%, on goods from 92 countries. This “double whammy” of negative news has intensified fears that ongoing trade wars are damaging the U.S. economy. The combination of a weaker labor market and new trade barriers has rattled investor confidence, fueling expectations that the Federal Reserve may be forced to cut interest rates to support the economy.
Value investing identifies undervalued stocks like ASO, with strong financials, low P/E ratios, and solid profitability, offering a margin of safety and growth potential.
Academy Sports & Outdoors shares dip 2.8% as the company leans on enhanced merchandising, RFID rollout and operational upgrades to stabilize performance.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
