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Are Investors Undervaluing Dick's Sporting Goods (DKS) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Dick's Sporting Goods (DKS - Free Report) is a stock many investors are watching right now. DKS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.73, while its industry has an average P/E of 16.07. DKS's Forward P/E has been as high as 19.19 and as low as 10.19, with a median of 13.66, all within the past year.
Another valuation metric that we should highlight is DKS's P/B ratio of 3.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 9.33. Over the past year, DKS's P/B has been as high as 4.28 and as low as 2.15, with a median of 2.89.
Finally, investors will want to recognize that DKS has a P/CF ratio of 8.04. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.44. Over the past year, DKS's P/CF has been as high as 9.89 and as low as 6.34, with a median of 8.09.
These are only a few of the key metrics included in Dick's Sporting Goods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DKS looks like an impressive value stock at the moment.
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Are Investors Undervaluing Dick's Sporting Goods (DKS) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Dick's Sporting Goods (DKS - Free Report) is a stock many investors are watching right now. DKS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.73, while its industry has an average P/E of 16.07. DKS's Forward P/E has been as high as 19.19 and as low as 10.19, with a median of 13.66, all within the past year.
Another valuation metric that we should highlight is DKS's P/B ratio of 3.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 9.33. Over the past year, DKS's P/B has been as high as 4.28 and as low as 2.15, with a median of 2.89.
Finally, investors will want to recognize that DKS has a P/CF ratio of 8.04. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.44. Over the past year, DKS's P/CF has been as high as 9.89 and as low as 6.34, with a median of 8.09.
These are only a few of the key metrics included in Dick's Sporting Goods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DKS looks like an impressive value stock at the moment.