Opportunity from losers? Vista Outdoors

Opportunity from losers? Vista Outdoors

Vista Outdoors sells outdoor sporting goods and ammunition. As most would expect, outdoor sporting goods sales have dropped off during the Covid 19 crisis. However, ammunition sales did very well. 

Shares dropped 30% in a week for Vista after Q1 sales missed the target by 30 million. So why is there opportunity for this loser? Vista has been very reactive, and with every drop or rise, Vista stocks eventually levels off from the overreaction. Right now the stock is trading around $7 a share, I anticipate sales to improve as the lockdown ends and the overreaction corrects itself. I think it’s a safe best to see the stock return to $10-$11 a share. Giving us a chance to buy this loser now and trade it once the correction happens.  

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