Academy Sports Stock Rallies on High Demand and Strong Fundamentals

One big reason for the healthy ramp in price is steady accumulation in the stock.

Academy Sports Stock is Under Strong Accumulation

So, what’s accumulation? Said simply, that’s when a stock climbs in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next outperforming stock. Academy Sports is both attractive on a fundamental basis and momentum basis.

This could set up well for the stock going forward. Let’s check in on the demand picture for the stock.

Each green bar signals big trading volumes as the stock ramped in price:

Since September, the shares attracted 7 unusual buy signals. Demand for the stock has been high. Those repeated green bars could mean more upside is ahead.

Now, let’s check out the fundamental action grabbing my attention:

Academy Sports and Outdoors Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, ASO has been growing sales and EPS at a healthy clip. Take a look:

• 1-year sales growth rate (+19.1%)
• 3-year EPS growth rate (+244.3%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, ASO has been a top-rated stock multiple times at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

Let’s wrap up.

Academy Sports Price Prediction

The Academy Sports rally could have further to go. Healthy buying in the shares is signaling to take notice. Shares could be positioned for further upside.

Please note, shares could be extended at these levels given the large accumulation signals.

Disclosure: the author holds no positions in ASO at the time of publication.

Learn more about the MAPsignals process here.

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