ASO - Academy Sports and Outdoors should be snapped up on any earnings dip - Wells Fargo

Academy Sports and Outdoors (ASO +3.9%) pushes higher in early trading after some recent downward selling pressure. Looking ahead to the ASO earnings report on Friday, Wells Fargo analyst Kate Fitzsimons and team recommend snapping up shares if there is an earnings selloff and take a constructive view overall. "We are intrigued by the current setup with the shares -6% MTD (vs. SPX +1%), but we note expectations still aren't low (mid-teens buyside bar vs. Street 10.1%). That said, we believe the sporting goods space continues to be on investors' radars for 2022 given current momentum, tailwinds from the consumer's greater adoption of outdoor and active habits during the pandemic, views on structural margin gains, and cash flow generation supporting shareholder returns. Top sporting goods name ASO checks all those boxes, with the added kicker of margin self-help via internal productivity and margin esports allowing a greater cushion to margin

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Academy Sports and Outdoors should be snapped up on any earnings dip - Wells Fargo