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Dick's Sporting Goods (DKS) Dips More Than Broader Market: What You Should Know

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Dick's Sporting Goods (DKS - Free Report) ended the recent trading session at $235.05, demonstrating a -1.73% swing from the preceding day's closing price. This change lagged the S&P 500's 0.32% loss on the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.85%.

The sporting goods retailer's shares have seen an increase of 14.48% over the last month, surpassing the Retail-Wholesale sector's gain of 2.72% and the S&P 500's gain of 1.52%.

Investors will be eagerly watching for the performance of Dick's Sporting Goods in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 4, 2024. The company's earnings per share (EPS) are projected to be $3.71, reflecting a 31.56% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.43 billion, indicating a 6.4% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.76 per share and revenue of $13.22 billion, which would represent changes of +6.58% and +1.84%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dick's Sporting Goods. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dick's Sporting Goods currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Dick's Sporting Goods is at present trading with a Forward P/E ratio of 17.38. Its industry sports an average Forward P/E of 13.33, so one might conclude that Dick's Sporting Goods is trading at a premium comparatively.

Also, we should mention that DKS has a PEG ratio of 2.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Miscellaneous industry had an average PEG ratio of 1.76 as trading concluded yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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