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Dick's Sporting Goods (DKS) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Dick's Sporting Goods (DKS - Free Report) ending at $204.90, denoting a -0.33% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.77% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.87%.

The sporting goods retailer's shares have seen a decrease of 5.25% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.56% and the S&P 500's gain of 4.87%.

Investors will be eagerly watching for the performance of Dick's Sporting Goods in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.68, indicating a 5.96% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.02 billion, indicating a 0.89% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.90 per share and revenue of $13.25 billion. These totals would mark changes of +7.67% and +2.06%, respectively, from last year.

Any recent changes to analyst estimates for Dick's Sporting Goods should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Dick's Sporting Goods currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Dick's Sporting Goods is presently trading at a Forward P/E ratio of 14.79. This indicates a premium in contrast to its industry's Forward P/E of 12.77.

It is also worth noting that DKS currently has a PEG ratio of 2.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DKS's industry had an average PEG ratio of 2.12 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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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