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Is Dick's Sporting Goods (DKS) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
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 P/E ratio of 14.78 right now. For comparison, its industry sports an average P/E of 29.91. Over the past year, DKS's Forward P/E has been as high as 30.38 and as low as 4.34, with a median of 13.78.
Investors will also notice that DKS has a PEG ratio of 2.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DKS's industry currently sports an average PEG of 4.18. Over the last 12 months, DKS's PEG has been as high as 7.45 and as low as 0.72, with a median of 2.61.
Another notable valuation metric for DKS is its P/B ratio of 3.17. The P/B is a method of comparing a stock's market value to 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 5.76. DKS's P/B has been as high as 3.28 and as low as 0.81, with a median of 2.23, over the past year.
Finally, our model also underscores that DKS has a P/CF ratio of 10.30. 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. DKS's current P/CF looks attractive when compared to its industry's average P/CF of 14.79. Over the past year, DKS's P/CF has been as high as 10.66 and as low as 2.54, with a median of 7.95.
These are only a few of the key metrics included in Dick's Sporting Goods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DKS looks like an impressive value stock at the moment.
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Is Dick's Sporting Goods (DKS) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
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 P/E ratio of 14.78 right now. For comparison, its industry sports an average P/E of 29.91. Over the past year, DKS's Forward P/E has been as high as 30.38 and as low as 4.34, with a median of 13.78.
Investors will also notice that DKS has a PEG ratio of 2.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DKS's industry currently sports an average PEG of 4.18. Over the last 12 months, DKS's PEG has been as high as 7.45 and as low as 0.72, with a median of 2.61.
Another notable valuation metric for DKS is its P/B ratio of 3.17. The P/B is a method of comparing a stock's market value to 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 5.76. DKS's P/B has been as high as 3.28 and as low as 0.81, with a median of 2.23, over the past year.
Finally, our model also underscores that DKS has a P/CF ratio of 10.30. 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. DKS's current P/CF looks attractive when compared to its industry's average P/CF of 14.79. Over the past year, DKS's P/CF has been as high as 10.66 and as low as 2.54, with a median of 7.95.
These are only a few of the key metrics included in Dick's Sporting Goods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DKS looks like an impressive value stock at the moment.