Evoking memories of the old Hans and Franz "Saturday Night Live" skits with Dana Carvey and Kevin Nealon, as Dick's Sporting Goods jumps out of buy range, rival Academy Sports & Outdoors continues to pump up a new buy zone. ASO stock is holding above a buy point after scoring a breakout after March 16 earnings.
After landing on this month's list of new buys by the best mutual funds, Academy Sports & Outdoors has also bounced onto the IBD Breakout Stocks Index.
Updated weekly, the index uses a combination of filters to find stocks to watch that are at or near breakouts. Investors can tap into these stocks with a single trade, buying or selling the IBD Breakout Opportunities ETF from Innovator, which tracks companies on this screen.
See Who Joins ASO Stock On The IBD Breakout Stocks Index
Academy Sports & Outdoors Among Top 2020 IPOs
One of the nation's largest sporting goods and outdoor stores, Academy Sports & Outdoors has 268 stores and counting. The retailer offers a broad assortment of hunting, fishing and camping equipment. It also sells sports and leisure products, footwear, apparel and more.
Headquartered just outside Houston, Academy Sports traces its roots back to 1938 when founder Max Gochman opened the Academy Tire Shop in San Antonio, Texas. After introducing sports and outdoors items in 1980 and changing its name to Academy Sports & Outdoors in 1995, the company unveiled its IPO in 2020.
Other notable names from the class of 2020 IPOs include Airbnb, Allegro MicroSystems, C3.ai and Shift4 Payments.
From humble beginnings, Academy Sports reached sales of $1 billion in 2003, $2 billion in 2007, $3 billion in 2012 and $4 billion in 2014. In fiscal 2022, the retailer posted net sales of $6.4 billion.
Earnings growth has slipped from strong double digits in fiscal 2021 to declines last year. For the current fiscal year, analysts see a 1% EPS slowdown but expect 8% growth in 2024.
In its March 16 report, Academy Sports & Outdoors posted a 27% year-over-year profit surge to $2.04 per share.
ASO Stock Vs. DKS Stock: Institutional Demand
The table below shows how rivals Academy Sports & Outdoors and Dick's Sporting Goods compare in terms of institutional demand.
The Accumulation/Distribution Rating tracks buying and selling by mutual funds and other large investors over the past 13 weeks.
The up/down volume ratio covers 50 days of trading, dividing total volume on up days by total volume on down days. A number above 1.0 points to demand.
| Company | Symbol | Composite Rating | Acc/Dis Rating | Up/down volume ratio | No. of A+ funds invested | On New Buys By Top Funds list |
|---|---|---|---|---|---|---|
| Academy Sports & Outdoors | ASO | 93 | B- | 1.5 | 50 | Yes |
| Dick's Sporting Goods | DKS | 93 | B | 1.3 | 35 | No |
ASO Stock Flexes Relative Strength
As DKS stock rides demand, ASO stock looks to keep fueling the breakout it launched past a 63.99 buy point in an early-stage flat base.
Academy Sports & Outdoors has risen sharply from May lows, cruising nicely along its 10-week moving average. In November, its 21-day exponential moving average climbed back above its longer-term 50-day line — a sign of rebounding technical strength. Since then, ASO stock has held support nicely at and above both moving averages.
On Tuesday, ASO stock closed within the buy zone as it tests the original 63.99 entry.
After more than an 11% gap-up in huge volume on earnings, Dick's Sporting Goods has held those gains. DKS stock is now slightly extended beyond its 138.53 buy point.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
