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Dick's Sporting Goods (DKS) Dips More Than Broader Markets: What You Should Know

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Dick's Sporting Goods (DKS - Free Report) closed the most recent trading day at $106.82, moving -0.68% from the previous trading session. This move lagged the S&P 500's daily loss of 0.09%.

Heading into today, shares of the sporting goods retailer had gained 6.16% over the past month, outpacing the Retail-Wholesale sector's loss of 3.25% and the S&P 500's gain of 2.28% in that time.

Investors will be hoping for strength from DKS as it approaches its next earnings release, which is expected to be August 25, 2021. In that report, analysts expect DKS to post earnings of $2.65 per share. This would mark a year-over-year decline of 17.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 3.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.96 per share and revenue of $10.82 billion. These totals would mark changes of +46.41% and +12.92%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DKS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% higher. DKS is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, DKS currently has a Forward P/E ratio of 12. This valuation marks a discount compared to its industry's average Forward P/E of 15.86.

Also, we should mention that DKS has a PEG ratio of 1.69. 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. The Retail - Miscellaneous was holding an average PEG ratio of 1.53 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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