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Dick's Sporting Goods (DKS) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Dick's Sporting Goods (DKS - Free Report) ending at $249.57, denoting a +1.57% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 0.5%.

Shares of the sporting goods retailer have appreciated by 4.54% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 3.53% and the S&P 500's gain of 2.52%.

The upcoming earnings release of Dick's Sporting Goods will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.45, reflecting a 10.39% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.75 billion, indicating a 3.25% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.88 per share and revenue of $13.3 billion. These totals would mark changes of +7.51% and +2.42%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Dick's Sporting Goods. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Dick's Sporting Goods is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Dick's Sporting Goods is currently being traded at a Forward P/E ratio of 17.7. This signifies a premium in comparison to the average Forward P/E of 14.4 for its industry.

Investors should also note that DKS has a PEG ratio of 2.8 right now. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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