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Amer Sports Stock Skyrockets 59% in a Month: Too Late to Jump In?
ZACKSยท 2025-05-22 14:36
Core Viewpoint - Amer Sports, Inc. has experienced a significant stock surge of 59.4% over the past month, outperforming both the industry and the S&P 500 [1] Stock Performance - As of Wednesday, Amer Sports' stock closed at $37, nearing its 52-week high of $38.42 and well above its 52-week low of $10.11 [1] - The stock has outperformed competitors such as American Outdoor Brands, Academy Sports and Outdoors, and Clarus Corporation [1] Technical Indicators - The stock is trading above its 50-day moving average, indicating strong upward momentum and price stability, reflecting positive market sentiment [4] Growth Factors - Amer Sports is benefiting from robust growth in its Arc'teryx brand, which is the fastest-growing and most profitable, with a 38% year-over-year increase in the women's segment [8] - Arc'teryx is focusing on upgrading its store footprint and enhancing brand awareness through community events [9] - Salomon is gaining traction in the global sneaker market, particularly in footwear, with successful product launches and growth in soft goods [10] Brand Portfolio and Market Position - Amer Sports' portfolio of premium brands positions it uniquely in the active lifestyle market, with potential for sustainable multi-year growth [11] - Both Arc'teryx and Salomon are identified as breakout opportunities with significant global scaling potential [11] Financial Guidance - The company has raised its full-year revenue growth guidance to between 15% and 17%, up from the previous estimate of 13-15% [12] - Earnings per share are now expected to be in the range of 67 to 72 cents, an increase from the prior estimate of 64 to 69 cents [12] Valuation Metrics - Amer Sports is currently valued at a premium, with a forward 12-month P/E ratio of 47.67, compared to the industry's 32.27 and the S&P 500's 21.81 [13] - The Zacks Consensus Estimate for earnings per share has been revised upward by 2.9% to 70 cents, indicating a year-over-year growth of 48.9% [14] Investor Sentiment - The recent stock surge reflects growing investor confidence in Amer Sports' strong brand portfolio and effective strategies, making it an attractive investment opportunity despite its premium valuation [15]