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Academy Sports + Outdoors - AI Stock Analysis

Analysis generated November 3, 2024

Academy Sports + Outdoors, an established leader in the sporting goods and outdoor recreation market, operates as a leading full-line sporting goods and outdoor recreation retailer in the United States. The company offers a broad assortment of quality hunting, fishing, and camping equipment and gear along with sports and recreation products. Furthermore, it provides a wide selection of footwear and apparel with a focus on value and convenience, designed to cater to a varied customer base from the novice to the enthusiast.

Fundamental Analysis

Starting with fundamentals, Academy Sports + Outdoors recently reported a quarterly revenue of $1.54 billion. This marks a 13.71% increase compared to the previous quarter, indicating positive short-term growth. However, compared to the same quarter last year, there was a slight decline of 2.03%, signaling some concern over year-over-year performance.

The net income for the last quarter stood at $143 million. This represents an impressive increase of 86.47% from the previous quarter, reinforcing the recent growth trajectory. Yet, compared to the same quarter last year, net income shows a decrease of 9.22%, which could raise questions about sustaining profitability over a longer period.

EBITDA for the last quarter was $225 million, reflecting an increase of 71.03% compared to the previous quarter, another beacon of robust short-term growth. However, the year-over-year figure indicates a decrease of 6.58%, which may necessitate a deeper look into operational efficiencies and market conditions.

The P/E ratio of 7.87 is notably low, which could indicate that the stock is undervalued. Investors generally consider a low P/E ratio as a bullish signal, suggesting that the stock might be a good value investment at current levels.

Technical Analysis

The current stock price of Academy Sports + Outdoors is $50.67. This represents a decrease of 7.72% over the past month, which might concern short-term investors. However, when compared to the stock price a year ago, there is a 4.47% increase, suggesting a positive longer-term trend.

Currently, the stock trend appears bearish. With the SMA10 at 51.63, lower than the previous SMA10 of 51.92, this indicates a potential downward trend in price movement. The Relative Strength Index (RSI) currently stands at 53.3, which is considered neutral and suggests that the stock isn't oversold or overbought.

Alternative Data Analysis

Looking at job postings and employee sentiment, Academy Sports + Outdoors has 703 open positions according to the most popular job boards. This figure is down by 17% over the last couple of months, which could signify the company's effort to cut costs or improve margins. This is not typically a positive signal for a growing company. Additionally, the business outlook has decreased by 9% over the same period, which is an even more troubling trend.

In terms of customer acquisition, Academy Sports + Outdoors has an estimated 12 million visitors to their webpage. However, this number has decreased by 23% in the last couple of months, raising concern as it may indicate a loss in customer interest or engagement. On social media, the company has 250,000 Instagram followers and 270,000 Twitter followers. The Instagram number has not shown any significant change, but the Twitter following has decreased by 1%, indicating a slight decline in user interest.

Finally, AltIndex's AI score, which combines fundamental, technical, and alternative data analysis to predict stock performance, gives Academy Sports + Outdoors a score of 33. This is a sell signal, suggesting that the stock might underperform in the near term.

Conclusion and Recommendation

Academy Sports + Outdoors presents a mixed bag for investors. The recent positive growth in quarterly revenue, net income, and EBITDA compared to the previous quarter suggests that the company is experiencing short-term growth. However, declines in these same metrics compared to the same quarter last year indicate potential challenges in maintaining long-term growth. The low P/E ratio points to potential undervaluation, making it an attractive option for value investors.

The technical analysis shows a bearish trend with a recent decline in stock price but suggests a potential long-term uptrend. Meanwhile, alternative data signals such as reduced job postings, a decrease in website visitors, and a slight decline in social media engagement paint a concerning picture.

Taking all these factors into account, cautious investors may opt to hold off on purchasing Academy Sports + Outdoors stock at the moment. The overall recommendation based on this comprehensive analysis would be a "Hold" or potentially a cautious "Sell," particularly in light of the sell signal from AltIndex's AI score.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.