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

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In the latest trading session, Dick's Sporting Goods (DKS - Free Report) closed at $75.37, marking a -1.45% move from the previous day. This change lagged the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.

Heading into today, shares of the sporting goods retailer had lost 4% over the past month, outpacing the Retail-Wholesale sector's loss of 4.09% and the S&P 500's loss of 8.06% in that time.

Investors will be hoping for strength from Dick's Sporting Goods as it approaches its next earnings release. In that report, analysts expect Dick's Sporting Goods to post earnings of $3.52 per share. This would mark a year-over-year decline of 30.71%. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, down 6.04% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.92 per share and revenue of $11.84 billion, which would represent changes of -30.45% and -3.71%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Dick's Sporting Goods. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.61% lower within the past month. Dick's Sporting Goods is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Dick's Sporting Goods has a Forward P/E ratio of 7 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.38.

We can also see that DKS currently has a PEG ratio of 1.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Miscellaneous was holding an average PEG ratio of 1.29 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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