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Dick's Sporting Goods (DKS) Dips More Than Broader Markets: What You Should Know

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Zacks Equity Research
·3 min read
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In the latest trading session, Dick's Sporting Goods (DKS) closed at $77.25, marking a -0.37% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the sporting goods retailer had gained 17.65% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.54% and the S&P 500's gain of 2.46% in that time.

Investors will be hoping for strength from DKS as it approaches its next earnings release. On that day, DKS is projected to report earnings of $2.19 per share, which would represent year-over-year growth of 65.91%. Our most recent consensus estimate is calling for quarterly revenue of $3.02 billion, up 15.77% from the year-ago period.

Any recent changes to analyst estimates for DKS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.73% higher. DKS currently has a Zacks Rank of #2 (Buy).

Investors should also note DKS's current valuation metrics, including its Forward P/E ratio of 14.99. Its industry sports an average Forward P/E of 14.09, so we one might conclude that DKS is trading at a premium comparatively.

Meanwhile, DKS's PEG ratio is currently 2.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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