Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Amer Sports, Inc. (AS) currently holding a Momentum Style Score of B [2] Group 2: Performance Metrics - Amer Sports, Inc. shares have increased by 4.55% over the past week, while the Zacks Leisure and Recreation Products industry has decreased by 0.41% during the same period [5] - Over the past quarter, AS shares have risen by 61.62%, and over the last year, they have increased by 111.56%, significantly outperforming the S&P 500, which moved 5.14% and 24.19% respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for AS is 2,268,454 shares, indicating a bullish sign if the stock is rising with above-average volume [7] - In the past two months, 3 earnings estimates for AS have increased while 1 has decreased, raising the consensus estimate from $0.45 to $0.46 [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, Amer Sports, Inc. is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Investment Rating - The report maintains a "Buy" rating for Amer Sports, indicating an expected relative return of over 20% within the next six months [5]. Core Insights - Amer Sports anticipates FY2024 revenue growth at the high end of its previous guidance range of 16-17%, with adjusted operating profit margin expected to be at the high end of 10.5-11.0% [1][4]. - The company has successfully repaid $1.2 billion of its outstanding term loans and expects adjusted net financial costs for FY2025 to be around $120 million, down from previous guidance of $180-190 million [1]. - Despite adverse foreign exchange rate fluctuations, the brand portfolio is expected to achieve strong growth and profitability in FY24Q4, demonstrating strong market competitiveness [2]. - The company has been recognized as a "Top Employer" in China for 2025, highlighting its talent development strategy and corporate culture [3]. - The flagship brands, Arc'teryx and Salomon, are expected to lead sustainable long-term growth and margin improvement through global expansion [2][3]. Financial Projections - Revenue projections for Amer Sports are $5.1 billion, $5.8 billion, and $6.7 billion for the years 2024, 2025, and 2026, respectively [4]. - The expected net profit attributable to shareholders is projected to be $170 million, $320 million, and $440 million for the same years [4]. - Corresponding EPS estimates are $0.35, $0.66, and $0.90, with PE ratios of 85X, 45X, and 33X for 2024, 2025, and 2026, respectively [4].

Group 1: Reddit - Reddit has provided a total return of over 300% since its IPO on March 20, with current shares priced at $149.05 [2] - The platform has over 100,000 discussion boards, known as subreddits, and generates revenue primarily through advertisements [2][3] - Reddit has become a popular source for informal information, attracting over 250 million unique users weekly, making it appealing for advertisers [3] Group 2: Amer Sports - Amer Sports has returned an impressive 500% since going public on March 7, with shares currently priced at $24.74 [5] - The company operates in three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports, and owns brands like Arc'teryx and Wilson [5] - Revenue growth has been strong, with Q1 revenue increasing by 48% year-over-year and Q3 reaching 68%, while the technical apparel segment has seen over 30% growth each quarter [4][6] Group 3: Nano Nuclear Energy - Nano Nuclear Energy has risen 740% since its IPO in May, with shares currently priced at $29.75 [8] - The company is focused on commercializing small modular reactors (SMRs), which are seen as a potential solution for providing reliable and clean electricity [8] - Despite the significant stock price increase, Nano currently has $0 in revenue as it is still in the early stages of reactor development and has not yet proven the economic viability of SMRs [9][10]

Group 1 - Astronics Corporation (ATRO) has seen a 1.7% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Amer Sports, Inc. (AS) has experienced a 2.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Brookfield Asset Management Ltd. (BAM) has recorded a 2.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Shopify Inc. (SHOP) has seen a 1.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Fidelis Insurance Holdings Limited (FIHL) has experienced a significant 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Financial Performance - Revenue for Q3 2024 reached $1,353.8 million, a 17.4% increase from $1,153.1 million in Q3 2023[4] - Gross profit for the nine months ended September 30, 2024, was $1,954.3 million, up 21.2% from $1,612.4 million in the same period of 2023[4] - Operating profit for Q3 2024 was $176.7 million, compared to $104.7 million in Q3 2023, reflecting a 68.8% increase[4] - Net income for the nine months ended September 30, 2024, was $61.3 million, a significant recovery from a net loss of $113.9 million in the same period of 2023[4] - Total comprehensive income for Q3 2024 was $90.4 million, compared to $65.7 million in Q3 2023[5] - Adjusted operating profit for the three months ended September 30, 2024, was $195.0 million, compared to $133.5 million for the same period in 2023, reflecting a 46.1% increase[32][33] - The company reported an income before tax of $128.9 million for the three months ended September 30, 2024, compared to a loss before tax of $3.3 million in the same period of 2023[32][33] - For the three months ended September 30, 2024, the company reported an income of $55.8 million, compared to a loss of $37.7 million in the same period of 2023[112] - The basic earnings per share for the three months ended September 30, 2024, was $0.11, while it was $(0.10) for the same period in 2023[112] Revenue Segments - The Technical Apparel segment generated revenue of $520.0 million for the three months ended September 30, 2024, up from $388.7 million in the same period of 2023, marking a 33.8% increase[32][33] - The Outdoor Performance segment reported revenue of $533.6 million for the three months ended September 30, 2024, compared to $494.6 million in the same period of 2023, an increase of 7.9%[32][33] - The Ball & Racquet Sports segment achieved revenue of $300.2 million for the three months ended September 30, 2024, compared to $269.8 million in the same period of 2023, a 11.3% increase[32][33] - Revenue from the Americas for the three months ended September 30, 2024, was $487.8 million, up 7.2% from $455.0 million in 2023[41] - Greater China revenue increased significantly to $312.9 million for the three months ended September 30, 2024, compared to $200.5 million in 2023, representing a 56.1% growth[41] - Direct-to-Consumer (DTC) revenue for the three months ended September 30, 2024, was $479.8 million, a 40.7% increase from $341.1 million in 2023[43] Assets and Liabilities - Total assets increased to $8,828.4 million as of September 30, 2024, compared to $8,373.8 million at the end of 2023[8] - Cash and cash equivalents decreased to $312.0 million from $483.4 million at the end of 2023[7] - Inventories rose to $1,338.5 million as of September 30, 2024, compared to $1,099.6 million at the end of 2023, indicating a 21.7% increase[7] - The company reported gross inventories of $1,376.2 million as of September 30, 2024, compared to $1,129.0 million as of December 31, 2023[75] - As of September 30, 2024, total interest-bearing liabilities amounted to $2,787.4 million, with loans from financial institutions at $2,189.1 million[80] - Long-term interest-bearing liabilities were reported at $1,984.7 million, while total long-term financial liabilities reached $2,415.1 million[101] - Current interest-bearing liabilities stood at $286.1 million, contributing to total current financial liabilities of $3,910.9 million[101] Expenses and Costs - Selling, general and administrative expenses totaled $586.5 million for the three months ended September 30, 2024, compared to $488.1 million in 2023, reflecting a 20.1% increase[45] - The company reported a decrease in finance costs to $178.9 million for the nine months ended September 30, 2024, down from $296.6 million in the same period of 2023[9] - For the three months ended September 30, 2024, finance income was $1.1 million, while finance costs totaled $48.9 million, resulting in a net finance cost of $47.8 million[64] - The income tax expense for the three months ended September 30, 2024, was $72.7 million, with an effective tax rate of 56%[67] Strategic Initiatives - The company plans to continue investing in property, plant, and equipment, with $157.0 million spent in Q3 2024[9] - The company sold the ENVE business on May 1, 2024, which represented less than 1% of its net revenue, indicating a strategic focus on core brands[38] - The Company expects continued growth in revenue driven by market expansion and new product launches in the upcoming quarters[41] Shareholder Information - The company raised $1.37 billion in gross proceeds from its IPO by issuing 105 million ordinary shares at an initial price of $13.00[18] - An additional $204.8 million was raised through the exercise of the underwriters' overallotment option for 15,750,000 shares at the same price[19] - The company had 505,559,667 ordinary shares outstanding as of September 30, 2024, with a share capital of $16.9 million[76] - The Company approved the 2024 Omnibus Incentive Plan, allowing for the issuance of up to 40,500,010 shares, including various share-based awards[60] - The company granted 1,101,085 Restricted Share Units (RSUs) and 2,012,596 Performance Share Units (PSUs) during the year, with grant date fair values of $13.63 and $14.55, respectively[63] Other Financial Metrics - The company recorded a loss on the early extinguishment of debt of $14.3 million during the nine months ended September 30, 2024[64] - The effective tax rate for the nine months ended September 30, 2024, was 32%, including a discrete tax benefit of $19.9 million due to the reversal of uncertain tax positions[68] - The company incurred $2.3 million in transaction costs due to the repricing of its loan facilities, recorded under Finance Cost[83] - The company recorded provisions totaling $33.6 million as of September 30, 2024, with $24.1 million related to product warranty[86] - Guarantees amounted to $19.1 million and other commitments totaled $348.8 million as of September 30, 2024[87]

Financial Data and Key Metrics Changes - Amer Sports Group achieved 17% sales growth in Q3 2024, with an adjusted operating margin of 14.4%, significantly above expectations [11][41] - Adjusted net income was $71 million in Q3, compared to an adjusted net loss of $13 million in the prior year [45] - Adjusted gross margin increased by 410 basis points to 55.5% in Q3, driven by positive mix shifts and lower discounting [41][44] Business Line Data and Key Metrics Changes - Technical apparel revenue increased by 34% to $520 million, led by Arc'teryx, with DTC growth of 40% [46] - Outdoor performance segment revenues increased by 8% to $534 million, driven by double-digit growth in Salomon footwear and apparel [49] - Ball and racquet revenue increased by 11% to $300 million, with strong trends in racquet sports and performance tennis [52] Market Data and Key Metrics Changes - Greater China saw a remarkable 56% growth, significantly outperforming the market [16][40] - Asia Pacific also experienced strong growth at 47%, while the Americas and EMEA saw improvements to 7% and 4% respectively [40] - Salomon footwear showed strong traction in Greater China and APAC, with a new category of outdoor sneakers resonating well with young consumers [28] Company Strategy and Development Direction - The company is focused on expanding its premium outdoor and sports brands, particularly through innovative products and retail expansion [12][13] - Arc'teryx is positioned as a breakout growth story with a disruptive D2C model and plans for significant retail expansion [13][19] - Salomon aims to increase its market share in the sneaker market, leveraging its unique technical performance position [14][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the sports and outdoor market, particularly in China, where consumer engagement is high [16][64] - The company anticipates continued strong performance in Q4, driven by robust demand and successful product launches [80] - Management is optimistic about achieving long-term revenue growth in the low double-digit to mid-teens range, supported by ongoing gross margin expansion [60][114] Other Important Information - The company plans to open a net of 30 new Arc'teryx stores in 2024, the highest in a single year [42] - Leadership changes were announced, with Guillaume Meyzenq appointed as President and CEO of Salomon [32][101] - The company is focused on managing debt and improving its tax rate, with expectations for a more normalized rate in the coming years [106] Q&A Session Summary Question: Discussion on the Chinese consumer and opportunities in the region - Management noted that the Chinese consumer is seeking newness, with the sports segment booming and outdoor activities becoming a lifestyle choice [64] Question: Arc'teryx growth drivers and capital allocation priorities - Management highlighted the successful opening of the Broadway store and strong momentum in footwear and women's categories [70][72] Question: Performance versus plan in Q3 across regions at Arc'teryx - Management reported exceeding expectations in all regions and channels, with strong momentum particularly in APAC and China [78] Question: Footwear opportunity and growth in North America - Management emphasized the importance of expanding the footwear business through both DTC and wholesale channels, with a goal of increasing footwear revenue to 20% [90][92] Question: Leadership vision for Salomon and potential for soft goods growth - Management expressed confidence in Guillaume's leadership and outlined strategic priorities for Salomon, including footwear focus and digital platform development [101][102] Question: Tax rate expectations and SG&A investments - Management indicated ongoing efforts to reduce the effective tax rate and maintain flat SG&A leverage relative to sales [106][112]

Core Viewpoint - Amer Sports, Inc. has experienced a significant stock price increase of 72.4% over the past three months, outperforming the industry growth of 8.9% [1] Stock Price Performance - As of the latest close, Amer Sports' stock price is $19.33, nearing its 52-week high of $19.73 and well above its low of $10.11 [1] - The company has outperformed competitors such as American Outdoor Brands, Academy Sports and Outdoors, and Clarus Corporation, which saw declines of 2.2%, 5.9%, and 30% respectively in the same period [1] Business Update - CEO James Zheng highlighted a strong growth outlook for Greater China, with a revenue increase of over 60% year-over-year during Golden Week (Oct. 1-7, 2024) [3] - The outdoor segment has shown resilience, supported by government stimulus measures in China [4] Brand Performance - Arc'teryx has led growth with high margins, particularly in new categories like footwear and women's wear, showing strong omni-channel performance [5] - Salomon's footwear has gained momentum in Greater China, with the introduction of "Outdoor sneakers" appealing to younger consumers [6] - 27 new Salomon stores were opened in Greater China, aiming for a total of around 200 by the end of 2024 [6] Financial Guidance - Amer Sports raised its full-year revenue growth guidance to between 15% and 17% and expects gross margins to reach 54.5% [7] - Adjusted operating margins are forecasted to be at the higher end of the 10.5% to 11% range, with earnings per share projected between 40 cents and 44 cents [7] Valuation - The company is currently trading at a forward 12-month P/E ratio of 32.1, which is higher than the industry average of 24.33 and the S&P 500's ratio of 22.08 [9]

Core Insights - Amer Sports' CEO James Zheng and management team engaged with investors and analysts in Shanghai, discussing long-term growth in Greater China and sales performance during Golden Week [1][2] - The company reported over 60% year-over-year revenue growth in Greater China for the Golden Week period, driven by strong sales at brands like Salomon, Wilson, and Arc'teryx [2] - Amer Sports sees significant growth opportunities in the outdoor segment in China, which remains resilient despite economic challenges [2] Company Overview - Amer Sports is a global group of iconic sports and outdoor brands, including Arc'teryx, Salomon, Wilson, Peak Performance, and Atomic, known for premium market positioning and craftsmanship [3][4] - The company employs over 11,400 people globally and aims to be the leader in premium sports and outdoor brands, with operations in over 40 countries and products sold in more than 100 countries [4] - In 2023, Amer Sports generated $4.4 billion in revenue, with shares listed on the New York Stock Exchange [4]

Tara Moore/DigitalVision via Getty Images Investment summary My recommendation for Amer Sports (NYSE:AS) is a buy rating. The solid demand momentum seen in 2Q24 was very encouraging, and I think this momentum can persist for the near term, enabling AS to meet consensus EPS estimates for FY24 and FY25. This should drive a positive multiple re-rating as the market starts to comp AS against peers with lower EPS growth but trades at a higher multiple. Business Overview AS has multiple sports & outdoor brands in ...

Robert Way/iStock Editorial via Getty Images I published my initial thesis on Amer Sports (NYSE:AS) in March of this year. Back then, I argued that while the company has a wonderful collection of iconic brands, the stock price is simply too expensive. Since then, the stock was down almost 10%. Amer Sports reported Q2 2024 results on August 20th before the bell. Both revenue and earnings beat analyst estimates. Furthermore, management raised guidance for FY 2024. The stock soared more than 10% after earnings ...