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Should Value Investors Buy Dick's Sporting Goods (DKS) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Dick's Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.19, while its industry has an average P/E of 17.99. Over the past 52 weeks, DKS's Forward P/E has been as high as 30.38 and as low as 4.34, with a median of 13.18.
Another notable valuation metric for DKS is its P/B ratio of 2.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. DKS's current P/B looks attractive when compared to its industry's average P/B of 5.76. Within the past 52 weeks, DKS's P/B has been as high as 2.91 and as low as 0.81, with a median of 2.15.
Finally, investors will want to recognize that DKS has a P/CF ratio of 9.31. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on 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 52 weeks, DKS's P/CF has been as high as 10.10 and as low as 2.54, with a median of 7.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Dick's Sporting Goods is likely undervalued currently. And when considering the strength of its earnings outlook, DKS sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Dick's Sporting Goods (DKS) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Dick's Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.19, while its industry has an average P/E of 17.99. Over the past 52 weeks, DKS's Forward P/E has been as high as 30.38 and as low as 4.34, with a median of 13.18.
Another notable valuation metric for DKS is its P/B ratio of 2.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. DKS's current P/B looks attractive when compared to its industry's average P/B of 5.76. Within the past 52 weeks, DKS's P/B has been as high as 2.91 and as low as 0.81, with a median of 2.15.
Finally, investors will want to recognize that DKS has a P/CF ratio of 9.31. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on 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 52 weeks, DKS's P/CF has been as high as 10.10 and as low as 2.54, with a median of 7.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Dick's Sporting Goods is likely undervalued currently. And when considering the strength of its earnings outlook, DKS sticks out at as one of the market's strongest value stocks.