A level of support has formed in the chart of Vista Outdoor Inc . (NYSE:VSTO). The stock has tested that level several times and if it falls through, a breakdown is expected. Read more to learn how to take advantage of this trade.Vista Outdoor Inc. (VSTO) designs, develops, and manufactures outdoor sports and recreation products, and is domiciled in the United States. The company organizes itself into two segments: Shooting sports and Outdoor products. Shooting sports includes ammunition and long guns, and Outdoor products include archery and hunting accessories.
The company is benefiting from growth in both of its segments as shooting sports were up 39% year over year and outdoor products were up 38% in the most recent quarter. This has been driven by consumer trends that continue to show high demand for outdoor activities. Plus the demand for ammunition is not slowing down anytime soon.
VSTO had $209 million in cash as of the end of the last quarter compared to no short-term debt. The company is also highly efficient with a return on equity of 41%. Analysts forecast sales to rise 24.4% for the year, while earnings are expected to jump 66.9% this year.