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Dick's Sporting Goods (DKS) Gains But Lags Market: What You Should Know

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Dick's Sporting Goods (DKS - Free Report) closed at $107.43 in the latest trading session, marking a +0.18% move from the prior day. This change lagged the S&P 500's 0.4% gain on the day. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.7%.

Prior to today's trading, shares of the sporting goods retailer had gained 21.52% over the past month. This has outpaced the Retail-Wholesale sector's gain of 14.83% and the S&P 500's gain of 12.15% in that time.

Dick's Sporting Goods will be looking to display strength as it nears its next earnings release, which is expected to be August 23, 2022. In that report, analysts expect Dick's Sporting Goods to post earnings of $3.51 per share. This would mark a year-over-year decline of 30.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.07 billion, down 6.16% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.77 per share and revenue of $11.82 billion, which would represent changes of -31.4% and -3.82%, respectively, from the prior year.

Investors should also note any 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. Dick's Sporting Goods is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Dick's Sporting Goods currently has a Forward P/E ratio of 9.96. This represents a discount compared to its industry's average Forward P/E of 12.74.

Also, we should mention that DKS has a PEG ratio of 1.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.72 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 237, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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