Amer Sports, Inc. (AS): A Bull Case Theory

We came across a bullish thesis on Amer Sports, Inc. (AS) on Substack by Stock Analysis Compilation. In this article, we will summarize the bulls’ thesis on AS. Amer Sports, Inc. (AS)’s share was trading at $25.59 as of Dec 4^th. AS’s forward P/E was 33.11 according to Yahoo Finance.

A customer in a specialty concept store wearing a full outfit of apparels and sports gear.

Amer Sports, known for its iconic brands Arc’teryx and Salomon, is positioned for growth with strong performance in key markets, particularly China. After its IPO earlier this year, the company initially faced challenges, with risks to near-term earnings materializing in its first two reports as a public entity. However, recent earnings have exceeded expectations, with an 18% growth in Q2, even in a difficult macroeconomic environment. More notably, Amer raised its 2024 guidance when many other consumer companies were cautious about weaker consumption trends, particularly in China. The company’s Greater China division, representing one-fifth of its total revenues, saw a remarkable 55% growth, driven by enhanced brand awareness and market penetration. Despite these positive developments, Amer’s growth prospects are not fully reflected in its current P/E multiple, indicating that the stock may be undervalued. The company’s performance in China and its strong brand presence in the outdoor and sports segments position it for continued medium-term growth. Amer Sports’ ability to outperform expectations and its expanding footprint in a critical market presents an attractive investment opportunity, particularly given its current valuation.

Amer Sports, Inc. (AS) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held AS at the end of the third quarter which was 14 in the previous quarter. While we acknowledge the risk and potential of AS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.