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Dick's Sporting Goods (DKS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Dick's Sporting Goods (DKS - Free Report) closed at $205.70 in the latest trading session, marking a -1.39% move from the prior day. This change lagged the S&P 500's daily loss of 0.92%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 1.6%.

The sporting goods retailer's shares have seen a decrease of 3.84% over the last month, not keeping up with the Retail-Wholesale sector's gain of 1.69% and the S&P 500's gain of 2.68%.

The upcoming earnings release of Dick's Sporting Goods will be of great interest to investors. It is anticipated that the company will report an EPS of $2.68, marking a 5.96% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.02 billion, indicating a 0.89% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $13.90 per share and a revenue of $13.25 billion, demonstrating changes of +7.67% and +2.06%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dick's Sporting Goods. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dick's Sporting Goods is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Dick's Sporting Goods is currently exchanging hands at a Forward P/E ratio of 15.01. This represents a premium compared to its industry's average Forward P/E of 12.21.

We can also see that DKS currently has a PEG ratio of 2.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Miscellaneous industry had an average PEG ratio of 2.1 as trading concluded yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.


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