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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 $90.40, marking a +0.06% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.4%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.19%.

Heading into today, shares of the sporting goods retailer had lost 14.08% over the past month, outpacing the Retail-Wholesale sector's loss of 15.28% and lagging the S&P 500's loss of 9.39% in that time.

Investors will be hoping for strength from Dick's Sporting Goods as it approaches its next earnings release, which is expected to be May 25, 2022. In that report, analysts expect Dick's Sporting Goods to post earnings of $2.42 per share. This would mark a year-over-year decline of 36.15%. Meanwhile, our latest consensus estimate is calling for revenue of $2.63 billion, down 10.01% from the prior-year quarter.

DKS's full-year Zacks Consensus Estimates are calling for earnings of $12.62 per share and revenue of $12.15 billion. These results would represent year-over-year changes of -19.62% and -1.19%, respectively.

It is also important to note the recent changes to analyst estimates for Dick's Sporting Goods. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Dick's Sporting Goods currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Dick's Sporting Goods is holding a Forward P/E ratio of 7.16. This valuation marks a discount compared to its industry's average Forward P/E of 10.44.

Also, we should mention that DKS has a PEG ratio of 1.43. 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 1.19 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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