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Should Value Investors Buy DICK'S Sporting Goods (DKS) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.89, which compares to its industry's average of 16.13. Over the past year, DKS's Forward P/E has been as high as 16.96 and as low as 8.09, with a median of 10.82.
Another notable valuation metric for DKS is its P/B ratio of 6.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 17.68. Over the past 12 months, DKS's P/B has been as high as 6.98 and as low as 3.25, with a median of 4.71.
Finally, investors will want to recognize that DKS has a P/CF ratio of 13.03. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.52. Within the past 12 months, DKS's P/CF has been as high as 13.34 and as low as 6.33, with a median of 8.65.
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.
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Should Value Investors Buy DICK'S Sporting Goods (DKS) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is DICK'S Sporting Goods (DKS - Free Report) . DKS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.89, which compares to its industry's average of 16.13. Over the past year, DKS's Forward P/E has been as high as 16.96 and as low as 8.09, with a median of 10.82.
Another notable valuation metric for DKS is its P/B ratio of 6.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 17.68. Over the past 12 months, DKS's P/B has been as high as 6.98 and as low as 3.25, with a median of 4.71.
Finally, investors will want to recognize that DKS has a P/CF ratio of 13.03. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.52. Within the past 12 months, DKS's P/CF has been as high as 13.34 and as low as 6.33, with a median of 8.65.
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.