AS: AI Flags Bearish Momentum – Time to Consider Puts?

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AS's technical outlook is bearish, indicating a potential for further decline over the next 1-3 months. The recent price action shows a clear downtrend, with the price currently at $29.53, significantly below the 50-day SMA of $34.18 and the 21-day EMA of $31.91, signaling continued weakness. Momentum indicators support this bearish sentiment. The RSI is at 30.37, indicating oversold conditions, but not necessarily a reversal, and the MACD is negative, with the MACD line (-0.85) below the signal line (-0.89), reinforcing the downward trend. The STOCHk is at 26.30, suggesting a potential for a short-term bounce, but the overall trend remains negative. The ADX is elevated at 24.73, indicating a strong trend, and recent price declines show high volume, confirming strong selling pressure. The ROC20 is at -8.54%. Given these factors, the technical indicators point towards continued bearish momentum for AS.

Amer Sports' Q2 2025 earnings call struck a moderately bullish tone, buoyed by strong performance and increased guidance, despite tariff headwinds. CEO James Zheng highlighted the company's 'unique portfolio of premium technical brands' and expressed confidence in managing near-term macro uncertainties. The company delivered 23% sales growth (22% excluding currency impact) and expanded adjusted operating margin by 260 basis points. CFO Andrew Page announced they are 'raising our full year revenue and EPS expectations,' despite higher tariffs. Specifically, revenue growth guidance increased from 15%-17% to 20%-21%, and adjusted diluted EPS is now expected to be $0.77-$0.82, up from $0.67-$0.72. Arc'teryx continues to be a strong driver, with CEO Stuart Haselden noting 'strong underlying trends in our business' and 'strong inventory position.' Salomon's footwear is also experiencing a global acceleration, particularly among younger female consumers, creating a 'very unique category we call the outdoor sneakers.' While Ball & Racquet's double-digit growth is not expected long-term, the company is optimistic about Tennis 360 and its expansion, especially in China.

AS's financial performance presents a mixed picture. Revenue has fluctuated, starting at $1,089.9M in Q1 2024 and reaching $1,236.3M in Q2 2025, indicating some growth, although not consistently. Profitability, as measured by the gross profit ratio, has seen some variability, ranging from 0.539 in Q1 2024 to 0.584 in Q2 2025. Operating cash flow has been volatile; Q1 2025 showed a positive operating cash flow of $163.7M, but prior quarters showed significantly lower or negative values, and the most recent cash flow statement is missing. A notable concern is the increasing total debt, which rose from $2,223.1M in Q1 2024 to $1,585M in Q2 2025, representing a decrease in debt. The absence of a cash flow statement for the most recent quarter makes a complete assessment challenging. Overall, while revenue shows some positive trends, the inconsistent profitability and significant debt levels warrant caution.

The company presents a moderately bullish investment profile based on its key metrics and financial ratios. Revenue has shown positive growth, indicating a healthy demand for its products or services. The gross margin has remained relatively stable, suggesting efficient cost management. The Return on Equity (ROE) indicates a solid return for shareholders. The Price-to-Earnings (P/E) ratio suggests the company is appropriately valued by the market. The debt-to-equity ratio has seen a decrease, showcasing the company's improved financial leverage. The current ratio signifies the company's strong ability to meet its short-term obligations. Overall, the company demonstrates a stable and growing business model with a healthy balance sheet, making it a moderately attractive investment for the next 6-12 months.