With the Tokyo Olympics starting this summer, Vista Outdoor (VSTO), through its Federal Premium Ammunition brand, is targeting gold. Meanwhile, VSTA stock joins fellow leisure sector stocks Fox Factory (FOXF) and MarineMax (HZO) on the IBD Breakout Stocks Index as it shoots for a new buy point.
Federal Premium is the official shotshell ammunition sponsor and supplier of USA Shooting, strengthening the organization’s efforts to promote shooting sports and prepare American athletes to bring home the gold during the 2020 Summer Olympics in Tokyo.
Fox Factory stock broke out last month and continues to hold above its 144.35 buy point. Fox Factory, which makes high-performance suspension products used in mountain bikes and off-road vehicles, is now slightly extended.
MarineMax stock motored past its 64.09 entry on May 7, but the retailer of recreational boats has run aground. MarineMax is now trading below the buy point but testing support at its 10-week moving average. HZO stock ended the day right at that benchmark line.
With its relative strength line just shy of a new high, Vista Outdoor took a shot at its 38.46 buy point Tuesday. But the stock retreated in heavy volume as the major stock market indexes also came under pressure.
On Wednesday, VSTO stock reversed off its lows in above-average volume to close just 2% below initial entry.
Vista Outdoor Recalibrates Shot At Breakout
Vista Outdoor was featured in this column on March 22, with analysts at the time expecting the Minnesota-based company to post 473% earnings growth in Q1. The owner of the CamelBak, Bushnell, Remington, Federal Premium and many other outdoor and ammunition brands shattered those targets by delivering an 827% EPS increase.
Q1 sales growth came in at 40%, marking a fourth straight quarter of accelerating revenue growth.
Analysts expect Vista Outdoor to post a 75% increase in earnings in Q1, but an 8% EPS decline for the full year. The company will hold its 2021 virtual investor day on May 26.
While VSTO stock didn’t make the latest list of new buys by the best mutual funds, it continues to garner solid institutional support. Vista Outdoor sports a B Accumulation/Distribution Rating, a 1.6 up/down volume ratio and five quarters of rising fund ownership.
After falling back below its buy point as the major stock market indexes also fell, see if VSTO stock can recalibrate its sights and fire back into the buy zone.
IBD Breakout Opportunities ETF
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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