10 Best Gun Stocks to Buy in 2025

3. Academy Sports and Outdoors, Inc. (NASDAQ:ASO)

Number of Hedge Fund Holders: 25

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is an American sporting goods and outdoor recreation retailer, headquartered in Katy, Texas. Its outdoor division sells products related to camping, fishing, and hunting (which include firearms and ammunition, among others). The sports and recreation division offers sports and fitness equipment, accessories, and nutrition supplies. The company also has apparel and footwear divisions.

On December 10, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) announced financial results for the third quarter of fiscal 2024. It reported sales of $1.34 billion in line with expectations. Outdoor was the best-performing division during the quarter, with year-over-year sales growth of 7%, driven by strength in the camping and hunting businesses. Adjusted diluted EPS stood at 98 cents.

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is focused on growth through new stores. It opened 16 new stores in 2024 and plans to open 20 to 25 new locations in 2025, raising its unit count by 7.5%. Given its positive growth trends, the company plans to open 160 to 180 stores over the next five years.

The company delivered its 20th consecutive quarter of positive adjusted free cash flow. It reported approximately $252 million of adjusted free cash flow year-to-date, up 68% from last year. Academy Sports and Outdoors, Inc. (NASDAQ:ASO) ended Q3 with $296 million in cash, improving 7.7% year-over-year. The inventory balance stood at $1.52 billion, an increase of 2.2% from 2023.

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is also committed to shareholder returns. In December, the Board authorized a $700 million share repurchase program and declared a quarterly dividend of 11 cents per share, raising investor confidence in the business. Wall Street analysts are also bullish on the stock, with a consensus Buy rating and an average share price upside potential of 18.51%.