Amer Sports Shares Soar 3.97% on Strong Q1 Earnings

Amer Sports (AS) shares surged to a record high today, with an intraday gain of 3.97%.

The strategy of buying AS shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The ASIX index, representing the average true range (ATR) of the S&P 500, was used as a proxy for the AS shares. Over the past 5 years, this strategy produced an average annual return of 6.5% and a total return of 36.2%. However, the strategy underperformed the market, as the S&P 500 delivered an average annual return of 9.5% and a total return of 48.1% over the same period. The Sharpe ratio, which measures risk-adjusted returns, was 0.7 for the strategy and 1.1 for the market, indicating that the strategy carried slightly more risk than the market. Overall, while the strategy provided positive returns, it was outperformed by simply holding the market index over the same period.

Morgan Stanley recently raised its price target for Amer Sports from $28.00 to $33.00, maintaining an "equal weight" rating. This adjustment likely bolstered investor confidence and contributed to the positive market sentiment surrounding the company.

Amer Sports reported impressive financial results for the first quarter of 2025. The company saw a 23% year-over-year increase in revenue, a 350 basis point improvement in adjusted gross margin to 58.0%, and a 79% rise in adjusted operating profit compared to the same period in 2024. These strong financial metrics underscore the company's operational efficiency and profitability, further enhancing investor trust.

Salomon Footwear continues to be a significant contributor to Amer Sports' brand strength. The positive impact of Salomon Footwear on the company's overall performance has been noted, which may have influenced the stock's recent upward trajectory.

Amer Sports was included in Barchart’s Top 100 Stocks to buy list, highlighting its strong market position and potential for continued investor interest. This recognition further solidifies the company's standing in the market and may attract more investors.