• In May 2026, Academy Sports + Outdoors announced it will open three new stores in Altoona, Pennsylvania and North Knoxville and Morristown, Tennessee, extending its physical footprint and creating nearly 200 local jobs while supporting community organizations through US$15,000 donations at each location.
• These latest openings, alongside recent store growth and an expanded myAcademy rewards and credit card program, highlight how Academy is pairing brick-and-mortar expansion with customer engagement initiatives to reinforce its long-term growth ambitions.
• We’ll now examine how this new round of store openings in Pennsylvania and Tennessee could influence Academy’s long-term investment narrative.

Find 51 companies with promising cash flow potential yet trading below their fair value.

Academy Sports and Outdoors Investment Narrative Recap

To own Academy Sports + Outdoors, you need to believe its mix of new stores, private label products, and loyalty programs can support steady, profitable growth despite a tougher promotional backdrop and margin pressures from labor and shipping costs. The latest Pennsylvania and Tennessee openings modestly reinforce the near term growth catalyst of store expansion, but they do not materially change the key risk that heavier discounting could pressure pricing power and profitability.

Among recent announcements, the March 2026 guidance for net sales of US$6,175 million to US$6,355 million and net income of US$380 million to US$415 million is most relevant. That outlook, set before these additional stores were announced, frames how much incremental contribution future openings might provide and how effectively Academy can offset cost and promotional headwinds while it continues to grow its footprint in newer markets.

Yet while new stores help the growth story, investors should also be aware of rising cost pressures and a more promotional backdrop...

Academy Sports and Outdoors' narrative projects $7.0 billion revenue and $481.1 million earnings by 2029. This requires 5.1% yearly revenue growth and a roughly $104 million earnings increase from $376.8 million today.

Uncover how Academy Sports and Outdoors' forecasts yield a $61.42 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Some of the lowest estimate analysts were assuming only 3.8 percent annual revenue growth and about US$451 million of earnings by 2029, so compared with optimism around store openings and omnichannel investments they paint a much more cautious picture that you should weigh against this expansion news.

Explore 3 other fair value estimates on Academy Sports and Outdoors - why the stock might be worth just $49.00!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Academy Sports and Outdoors research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Academy Sports and Outdoors research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Academy Sports and Outdoors' overall financial health at a glance.

Searching For A Fresh Perspective?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• Outshine the giants: these 14 early-stage AI stocks could fund your retirement.
• Uncover the next big thing with 27 elite penny stocks that balance risk and reward.
• We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.