Dick's Sporting Goods (DKS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Dick's Sporting Goods (DKS) closed at $101.32, marking a +1.3% move from the previous day. This move outpaced the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq lost 0.47%.
Heading into today, shares of the sporting goods retailer had lost 11% over the past month, lagging the Retail-Wholesale sector's gain of 1.91% and the S&P 500's gain of 3.75% in that time.
Investors will be hoping for strength from Dick's Sporting Goods as it approaches its next earnings release. On that day, Dick's Sporting Goods is projected to report earnings of $2.45 per share, which would represent a year-over-year decline of 35.36%. Meanwhile, our latest consensus estimate is calling for revenue of $2.63 billion, down 10.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.57 per share and revenue of $12.15 billion, which would represent changes of -19.94% and -1.19%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Dick's Sporting Goods. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 12.78% higher within the past month. Dick's Sporting Goods is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Dick's Sporting Goods has a Forward P/E ratio of 7.96 right now. For comparison, its industry has an average Forward P/E of 11.71, which means Dick's Sporting Goods is trading at a discount to the group.
Investors should also note that DKS has a PEG ratio of 1.59 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 was holding an average PEG ratio of 0.97 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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