We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing DICK'S Sporting Goods (DKS) Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.31 right now. For comparison, its industry sports an average P/E of 16.66. Over the past 52 weeks, DKS's Forward P/E has been as high as 16.96 and as low as 8.09, with a median of 10.20.
Finally, investors should note that DKS has a P/CF ratio of 11.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DKS's current P/CF looks attractive when compared to its industry's average P/CF of 21.29. DKS's P/CF has been as high as 12.95 and as low as 6.33, with a median of 8.49, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that DICK'S Sporting Goods is likely undervalued currently. And when considering the strength of its earnings outlook, DKS sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing DICK'S Sporting Goods (DKS) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.31 right now. For comparison, its industry sports an average P/E of 16.66. Over the past 52 weeks, DKS's Forward P/E has been as high as 16.96 and as low as 8.09, with a median of 10.20.
Finally, investors should note that DKS has a P/CF ratio of 11.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DKS's current P/CF looks attractive when compared to its industry's average P/CF of 21.29. DKS's P/CF has been as high as 12.95 and as low as 6.33, with a median of 8.49, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that DICK'S Sporting Goods is likely undervalued currently. And when considering the strength of its earnings outlook, DKS sticks out at as one of the market's strongest value stocks.