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

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Dick's Sporting Goods (DKS) closed the most recent trading day at $93.47, moving -1.62% from the previous trading session. This change lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the sporting goods retailer had gained 12.58% in the past month. In that same time, the Retail-Wholesale sector gained 8.19%, while the S&P 500 gained 5.55%.

Wall Street will be looking for positivity from Dick's Sporting Goods as it approaches its next earnings report date. The company is expected to report EPS of $3.51, down 30.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.07 billion, down 6.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.80 per share and revenue of $11.82 billion. These totals would mark changes of -31.21% and -3.82%, respectively, from last year.

It is also important to note the 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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 0.59% higher. Dick's Sporting Goods currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Dick's Sporting Goods is holding a Forward P/E ratio of 8.8. Its industry sports an average Forward P/E of 10.27, so we one might conclude that Dick's Sporting Goods is trading at a discount comparatively.

It is also worth noting that DKS currently has a PEG ratio of 1.76. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 11% 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.

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


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