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Torrid, Grocery Outlet, Academy Sports, Sally Beauty, and Monro Shares Are Soaring, What You Need To Know

CURV Cover Image

What Happened?

A number of stocks jumped in the afternoon session after a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve. 

The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy. 

Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Zooming In On Academy Sports (ASO)

Academy Sports’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock gained 3.1% on the news that a key competitor, Amer Sports, boosted its financial forecast for the third quarter of 2025. 

The positive news from Amer Sports appeared to lift sentiment across the sporting goods sector. During its investor day, Amer Sports announced it expected its third-quarter revenue to grow in the high 20s percentage range, a significant jump from its previous forecast of around 20% growth. The company also signaled stronger profitability, predicting its adjusted operating margin would meet or beat the high end of its prior 12-13% guidance. 

When a major player like Amer Sports sees robust demand, investors often bet that the favorable market conditions will benefit peers like Academy Sports as well, fueling optimism for the industry's health.

Academy Sports is down 12.2% since the beginning of the year, and at $49.66 per share, it is trading 18.8% below its 52-week high of $61.17 from December 2024. Investors who bought $1,000 worth of Academy Sports’s shares 5 years ago would now be looking at an investment worth $3,823.

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