Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Dick's Sporting Goods (DKS - Free Report) closed at $110.06, marking a +0.22% move from the previous day. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.8%, and the Nasdaq, a tech-heavy index, added 0.19%.

Heading into today, shares of the sporting goods retailer had gained 1.47% over the past month, outpacing the Retail-Wholesale sector's loss of 6.55% and the S&P 500's loss of 6.15% in that time.

Dick's Sporting Goods will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.21, down 30.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, down 1.7% from the prior-year quarter.

DKS's full-year Zacks Consensus Estimates are calling for earnings of $11.42 per share and revenue of $11.9 billion. These results would represent year-over-year changes of -27.26% and -3.22%, respectively.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.79% higher within the past month. Dick's Sporting Goods is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Dick's Sporting Goods's current valuation metrics, including its Forward P/E ratio of 9.62. This valuation marks a discount compared to its industry's average Forward P/E of 10.67.

It is also worth noting that DKS currently has a PEG ratio of 1.92. 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 1.54 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 153, putting it in the bottom 40% 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.

To follow DKS in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DICK'S Sporting Goods, Inc. (DKS) - free report >>

Published in