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Dick's Sporting Goods (DKS) Advances While Market Declines: Some Information for Investors

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In the latest trading session, Dick's Sporting Goods (DKS - Free Report) closed at $196.73, marking a +1.56% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.33%.

Coming into today, shares of the sporting goods retailer had lost 9.92% in the past month. In that same time, the Retail-Wholesale sector gained 1.01%, while the S&P 500 gained 0.41%.

Investors will be eagerly watching for the performance of Dick's Sporting Goods in its upcoming earnings disclosure. In that report, analysts expect Dick's Sporting Goods to post earnings of $2.68 per share. This would mark a year-over-year decline of 5.96%. 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.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.90 per share and a revenue of $13.25 billion, signifying shifts of +7.67% and +2.06%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Dick's Sporting Goods. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 remained stagnant. Dick's Sporting Goods is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Dick's Sporting Goods is currently trading at a Forward P/E ratio of 13.93. This expresses a premium compared to the average Forward P/E of 11.96 of its industry.

We can additionally observe that DKS currently boasts a PEG ratio of 2.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DKS's industry had an average PEG ratio of 2.17 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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