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Dick's Sporting Goods (DKS) Stock Slides as Market Rises: Facts to Know Before You Trade

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Dick's Sporting Goods (DKS - Free Report) closed at $202.13 in the latest trading session, marking a -1.53% move from the prior day. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.78%.

Heading into today, shares of the sporting goods retailer had lost 1.64% over the past month, lagging the Retail-Wholesale sector's loss of 0.07% and the S&P 500's gain of 1.67% in that time.

The investment community will be paying close attention to the earnings performance of Dick's Sporting Goods in its upcoming release. The company's upcoming EPS is projected at $2.68, signifying a 5.96% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.02 billion, reflecting a 0.89% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.90 per share and a revenue of $13.25 billion, indicating changes of +7.67% and +2.06%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Dick's Sporting Goods. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Dick's Sporting Goods currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Dick's Sporting Goods is currently being traded at a Forward P/E ratio of 14.77. This indicates a premium in contrast to its industry's Forward P/E of 12.26.

We can also see that DKS currently has a PEG ratio of 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Miscellaneous was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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