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Dick's Sporting Goods (DKS) Gains As Market Dips: What You Should Know

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In the latest trading session, Dick's Sporting Goods (DKS - Free Report) closed at $125.82, marking a +1.51% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.11%.

Coming into today, shares of the sporting goods retailer had lost 8.33% in the past month. In that same time, the Retail-Wholesale sector gained 3.35%, while the S&P 500 gained 4.61%.

Wall Street will be looking for positivity from DKS as it approaches its next earnings report date. On that day, DKS is projected to report earnings of $1.82 per share, which would represent a year-over-year decline of 9.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 0.43% from the year-ago period.

DKS's full-year Zacks Consensus Estimates are calling for earnings of $12.89 per share and revenue of $11.69 billion. These results would represent year-over-year changes of +110.62% and +21.97%, respectively.

Investors might also notice recent changes to analyst estimates for DKS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 7.16% higher. DKS is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, DKS is holding a Forward P/E ratio of 9.62. For comparison, its industry has an average Forward P/E of 13.91, which means DKS is trading at a discount to the group.

It is also worth noting that DKS currently has a PEG ratio of 0.75. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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