The Zacks Retail and Wholesale Sector has been hot over the last month, increasing by nearly 13% in value and marginally outperforming the S&P 500. Still, the sector is deep in the red YTD, down almost 15%.
A titan in the industry, Dick’s Sporting Goods (DKS - Free Report) , is on deck to unveil Q2 earnings on Tuesday, August 23rd, before market open.
Dick’s Sporting Goods operates as a major omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
The company currently carries a Zacks Rank #4 (Sell) with an overall VGM Score of a B. How does the sports retailer stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Dick’s Sporting Goods shares have provided a much higher level of defense than the S&P 500 year-to-date, declining just 2.1%.
Over the last month, shares have remained remarkably strong, increasing by a sizable 21% and easily outperforming the S&P 500.
In addition, DKS shares trade at enticing valuation levels – the company’s 10.4X forward earnings multiple is nicely below its five-year median of 11.1X and represents a steep 61% discount relative to its Zacks Sector.
DKS sports a Style Score of an A for Value.
Quarterly Estimates
Analysts have primarily been bearish for the quarter to be reported, with two of three estimate revisions being downwards. Still, the Zacks Consensus EPS Estimate of $3.52 reflects a 31% drop-off in quarterly earnings Y/Y.
The company’s top-line appears to be softening as well – DKS is forecasted to have generated $3.1 billion in revenue throughout the quarter, reflecting a 6.2% decrease compared to year-ago quarterly sales of $3.3 billion.
Quarterly Performance & Market Reactions
DKS has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in eight consecutive quarters. Just in its latest print, the company recorded a sizable 17.3% bottom-line beat.
Top-line results have been even more remarkable – Dick’s Sporting Goods has chained together 14 consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, the market has been impressed with the company’s last two quarterly releases, with shares moving upwards following each one by at least 9.4%.
Putting Everything Together
DKS shares have displayed remarkable relative strength in 2022, outperforming the S&P 500 not just year-to-date but over the past month as well.
Furthermore, shares trade at enticing valuation levels, well below their five-year median and Zacks Sector average.
Analysts have been bearish for the quarter to be reported, and estimates reflect a declining top and bottom-line.
Still, the company has consistently exceeded quarterly estimates, and the market has reacted well as of late following quarterly prints.
Heading into the release, Dick’s Sporting Goods (DKS - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -1.6%.
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The Zacks Retail and Wholesale Sector has been hot over the last month, increasing by nearly 13% in value and marginally outperforming the S&P 500. Still, the sector is deep in the red YTD, down almost 15%.
A titan in the industry, Dick’s Sporting Goods (DKS - Free Report) , is on deck to unveil Q2 earnings on Tuesday, August 23rd, before market open.
Dick’s Sporting Goods operates as a major omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
The company currently carries a Zacks Rank #4 (Sell) with an overall VGM Score of a B. How does the sports retailer stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Dick’s Sporting Goods shares have provided a much higher level of defense than the S&P 500 year-to-date, declining just 2.1%.
Over the last month, shares have remained remarkably strong, increasing by a sizable 21% and easily outperforming the S&P 500.
In addition, DKS shares trade at enticing valuation levels – the company’s 10.4X forward earnings multiple is nicely below its five-year median of 11.1X and represents a steep 61% discount relative to its Zacks Sector.
DKS sports a Style Score of an A for Value.
Quarterly Estimates
Analysts have primarily been bearish for the quarter to be reported, with two of three estimate revisions being downwards. Still, the Zacks Consensus EPS Estimate of $3.52 reflects a 31% drop-off in quarterly earnings Y/Y.
The company’s top-line appears to be softening as well – DKS is forecasted to have generated $3.1 billion in revenue throughout the quarter, reflecting a 6.2% decrease compared to year-ago quarterly sales of $3.3 billion.
Quarterly Performance & Market Reactions
DKS has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in eight consecutive quarters. Just in its latest print, the company recorded a sizable 17.3% bottom-line beat.
Top-line results have been even more remarkable – Dick’s Sporting Goods has chained together 14 consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, the market has been impressed with the company’s last two quarterly releases, with shares moving upwards following each one by at least 9.4%.
Putting Everything Together
DKS shares have displayed remarkable relative strength in 2022, outperforming the S&P 500 not just year-to-date but over the past month as well.
Furthermore, shares trade at enticing valuation levels, well below their five-year median and Zacks Sector average.
Analysts have been bearish for the quarter to be reported, and estimates reflect a declining top and bottom-line.
Still, the company has consistently exceeded quarterly estimates, and the market has reacted well as of late following quarterly prints.
Heading into the release, Dick’s Sporting Goods (DKS - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -1.6%.
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Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
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