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Should Value Investors Buy Dick's Sporting Goods (DKS) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Dick's Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.33. This compares to its industry's average Forward P/E of 16.73. DKS's Forward P/E has been as high as 27.23 and as low as 10.19, with a median of 14.20, all within the past year.

We should also highlight that DKS has a P/B ratio of 3.40. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.36. DKS's P/B has been as high as 3.49 and as low as 2.02, with a median of 2.71, over the past year.

Finally, investors should note that DKS has a P/CF ratio of 7.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.26. Over the past 52 weeks, DKS's P/CF has been as high as 10.10 and as low as 6.34, with a median of 8.24.

These are just a handful of the figures considered in Dick's Sporting Goods's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DKS is an impressive value stock right now.


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