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Dick's Sporting Goods (DKS) Gains As Market Dips: What You Should Know

In the latest trading session, Dick's Sporting Goods (DKS) closed at $115.66, marking a +1.67% move from the previous day. This change outpaced the S&P 500's 0.41% loss on the day. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Prior to today's trading, shares of the sporting goods retailer had gained 3.59% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.11% and lagged the S&P 500's gain of 8.12% in that time.

Wall Street will be looking for positivity from Dick's Sporting Goods as it approaches its next earnings report date. This is expected to be November 22, 2022. In that report, analysts expect Dick's Sporting Goods to post earnings of $3.55 per share. This would mark year-over-year growth of 11.29%. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, down 1.7% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.44 per share and revenue of $11.9 billion. These totals would mark changes of -27.13% and -3.22%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dick's Sporting Goods. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Dick's Sporting Goods is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Dick's Sporting Goods is currently trading at a Forward P/E ratio of 9.95. This valuation marks a discount compared to its industry's average Forward P/E of 11.49.

Investors should also note that DKS has a PEG ratio of 1.99 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous industry currently had an average PEG ratio of 1.59 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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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