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

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Dick's Sporting Goods (DKS - Free Report) closed the most recent trading day at $107.16, moving +1.41% from the previous trading session. This change outpaced the S&P 500's 1.12% gain on the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Heading into today, shares of the sporting goods retailer had lost 5.16% over the past month, lagging the Retail-Wholesale sector's gain of 5.08% and the S&P 500's gain of 4.63% 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, down 10.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.65 per share and revenue of $12.15 billion, which would represent changes of -19.43% and -1.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Dick's Sporting Goods. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

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. The Zacks Consensus EPS estimate has moved 0.6% higher within the past month. Dick's Sporting Goods is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Dick's Sporting Goods is currently trading at a Forward P/E ratio of 8.35. Its industry sports an average Forward P/E of 11.32, so we one might conclude that Dick's Sporting Goods is trading at a discount comparatively.

We can also see that DKS currently has a PEG ratio of 1.67. 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. The Retail - Miscellaneous was holding an average PEG ratio of 1.15 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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