Back to top

Image: Bigstock

Is Dick's Sporting Goods (DKS) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Dick's Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.12, which compares to its industry's average of 12.41. Over the past year, DKS's Forward P/E has been as high as 12.49 and as low as 8.87, with a median of 10.73.

Investors should also recognize that DKS has a P/B ratio of 1.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.45. Within the past 52 weeks, DKS's P/B has been as high as 2.06 and as low as 1.53, with a median of 1.80.

Finally, investors will want to recognize that DKS has a P/CF ratio of 5.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DKS's current P/CF looks attractive when compared to its industry's average P/CF of 17.03. Over the past year, DKS's P/CF has been as high as 6.98 and as low as 5, with a median of 5.96.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Dick's Sporting Goods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DKS feels like a great value stock at the moment.


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