Dick's Sporting Goods (DKS) Gains As Market Dips: What You Should Know
Dick's Sporting Goods (DKS) closed at $114.68 in the latest trading session, marking a +1.24% move from the prior day. This change outpaced the S&P 500's 0.24% loss on the day.
Heading into today, shares of the sporting goods retailer had lost 13.11% over the past month, lagging the Retail-Wholesale sector's loss of 5% and the S&P 500's loss of 2.12% in that time.
Wall Street will be looking for positivity from DKS as it approaches its next earnings report date. On that day, DKS is projected to report earnings of $1.81 per share, which would represent a year-over-year decline of 9.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 0.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.88 per share and revenue of $11.69 billion. These totals would mark changes of +110.46% and +21.97%, respectively, from last year.
Any recent changes to analyst estimates for DKS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.12% higher. DKS is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, DKS is holding a Forward P/E ratio of 8.79. Its industry sports an average Forward P/E of 12.45, so we one might conclude that DKS is trading at a discount comparatively.
Also, we should mention that DKS has a PEG ratio of 0.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DKS's industry had an average PEG ratio of 0.97 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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.
To follow DKS in the coming trading sessions, be sure to utilize Zacks.com.
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DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
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