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DKS Stock Trades Near Its 52-Week High: Should You Buy It Now?
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DICK’S Sporting Goods Inc. (DKS - Free Report) has been showing strong momentum, hovering close to its 52-week high of $239.30. The stock, closing at $233.50 on Wednesday, remains just 2.4% below that peak. Moreover, the stock is currently trading above its 200-day and 50-day moving averages of $209.35 and $211.66, respectively, highlighting a potential upward trend.
Image Source: Zacks Investment Research
DICK’S stock has seen a remarkable 74% rise in the past year, outpacing the industry's growth of 11.8%. The company’s focus on solid strategic efforts, brand strength and continued market share gains has helped it outperform the broader sector and the S&P 500 index, which grew 29.8% and 26.7%, respectively, in the same period.
Image Source: Zacks Investment Research
DKS Stock’s Strategic Growth
DICK’S has expanded its presence by leveraging four strategic pillars, including an omnichannel athlete experience, a differentiated product assortment, deep engagement with the DICK'S brand, and knowledgeable, passionate teammates who provide exceptional service.
The company is experiencing strong growth backed by its brand strength and continued market share gains, reflected in a robust performance for the third quarter of fiscal 2024. The company reported improved sales and surpassed expectations, driven by increased comparable store sales and strong transaction growth.
DICK’S is focused on business optimization to streamline costs, while robust omnichannel experiences and a unique product assortment continue to drive growth. Management is dedicated to digital innovation, as demonstrated by the engagement of over 5.5 million unique users with GameChanger, marking a 21% year-over-year increase. With nearly two million daily active users, the app enables the company to connect with athletes beyond traditional shopping, reinforcing its leadership in the sports sector.
DKS has been expanding its footprint with the introduction of multiple House of Sport and Field House locations, aiming to enhance its omnichannel athlete experience. The company remains focused on growth in key markets, particularly Texas, with plans for additional House of Sport outlets and investments in marketing and infrastructure. It is also planning a distribution center in Fort Worth, set to open in 2026.
Management is committed to revolutionizing its DICK’S stores with a next-generation format and continues to enhance digital and store experiences to drive athlete engagement. These strategic investments are expected to significantly boost sales and profitability.
DICK’S Stock’s Financial Strength & Promising Outlook
DICK’S third-quarter fiscal 2024 results highlight its strong health and prudent capital management. The company ended the fiscal third quarter with cash and cash equivalents of $1.5 billion and no outstanding borrowings under its $1.6 billion unsecured credit, demonstrating solid liquidity.
The company raised its fiscal 2024 outlook, now expecting net sales of $13.2-$13.3 billion, with comparable sales growth of 3.6-4.2%. This reflects improvements from fiscal 2023 sales of $12.98 billion and 2.5% comps growth. DICK’S Sporting also maintained its projected EBT margin at 11.2% at the mid-point for fiscal 2024, showing growth from 10.8% in the prior year. Adjusted EPS is forecasted to be between $13.65 and $13.95, compared to $12.91 recorded in fiscal 2023.
What Could Derail DKS Stock’s Momentum?
Despite its strong performance and strategic initiatives, DICK’S has been dealing with increased costs stemming from an uncertain macroeconomic environment, higher wage rates, greater investments in technology, talent, and marketing to enhance its athlete experience.
In the third quarter of fiscal 2024, adjusted selling, general and administrative (SG&A) expenses saw a year-over-year increase, causing deleveraging as a percentage of sales. This resulted from the calendar shift and strategic investments in key areas such as marketing, technology and talent, alongside higher incentive compensation.
Management expects a modest deleverage in SG&A expenses for fiscal 2024 due to the investments made for future growth. Additionally, pre-opening expenses for the fiscal fourth quarter are expected to rise slightly compared to the previous year, reflecting the timing and mix of store openings.
Final Thought on DICK’S Stock
DKS stock presents an appealing option for investors fueled by its strong brand and consistent market share gains, and four strategic growth pillars. The outlook for fiscal 2024 suggests robust sales and profit growth.
However, investors should be mindful of potential risks, including elevated costs from rising wages, increased investments and the uncertain macroeconomic environment, which could affect the company’s momentum. With a Zacks Rank #3 (Hold), the stock reflects a balanced outlook, indicating neither an overly bullish nor bearish stance on future performance.
Three Picks You Can’t Miss
We have highlighted three better-ranked stocks, namely, The Gap, Inc. (GAP - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Nordstrom Inc. (JWN - Free Report) .
The Zacks Consensus Estimate for GAP’s current financial-year sales and earnings suggests declines of 0.8% and 41.3%, respectively, from the year-ago reported figures.
Abercrombie & Fitch, a specialty retailer of premium, high-quality casual apparel, presently flaunts a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 14.8%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales and earnings indicates growth of 15% and 69.3%, respectively, from the prior-year levels.
Nordstrom is a leading fashion specialty retailer in the United States. The company offers an extensive selection of both branded and private-label merchandise. It currently has a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Nordstrom’s fiscal 2024 sales indicates growth of 1.1% from the reported figure of fiscal 2023. JWN has a negative trailing four-quarter average earnings surprise of 30%.
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DKS Stock Trades Near Its 52-Week High: Should You Buy It Now?
DICK’S Sporting Goods Inc. (DKS - Free Report) has been showing strong momentum, hovering close to its 52-week high of $239.30. The stock, closing at $233.50 on Wednesday, remains just 2.4% below that peak. Moreover, the stock is currently trading above its 200-day and 50-day moving averages of $209.35 and $211.66, respectively, highlighting a potential upward trend.
Image Source: Zacks Investment Research
DICK’S stock has seen a remarkable 74% rise in the past year, outpacing the industry's growth of 11.8%. The company’s focus on solid strategic efforts, brand strength and continued market share gains has helped it outperform the broader sector and the S&P 500 index, which grew 29.8% and 26.7%, respectively, in the same period.
Image Source: Zacks Investment Research
DKS Stock’s Strategic Growth
DICK’S has expanded its presence by leveraging four strategic pillars, including an omnichannel athlete experience, a differentiated product assortment, deep engagement with the DICK'S brand, and knowledgeable, passionate teammates who provide exceptional service.
The company is experiencing strong growth backed by its brand strength and continued market share gains, reflected in a robust performance for the third quarter of fiscal 2024. The company reported improved sales and surpassed expectations, driven by increased comparable store sales and strong transaction growth.
DICK’S is focused on business optimization to streamline costs, while robust omnichannel experiences and a unique product assortment continue to drive growth. Management is dedicated to digital innovation, as demonstrated by the engagement of over 5.5 million unique users with GameChanger, marking a 21% year-over-year increase. With nearly two million daily active users, the app enables the company to connect with athletes beyond traditional shopping, reinforcing its leadership in the sports sector.
DKS has been expanding its footprint with the introduction of multiple House of Sport and Field House locations, aiming to enhance its omnichannel athlete experience. The company remains focused on growth in key markets, particularly Texas, with plans for additional House of Sport outlets and investments in marketing and infrastructure. It is also planning a distribution center in Fort Worth, set to open in 2026.
Management is committed to revolutionizing its DICK’S stores with a next-generation format and continues to enhance digital and store experiences to drive athlete engagement. These strategic investments are expected to significantly boost sales and profitability.
DICK’S Stock’s Financial Strength & Promising Outlook
DICK’S third-quarter fiscal 2024 results highlight its strong health and prudent capital management. The company ended the fiscal third quarter with cash and cash equivalents of $1.5 billion and no outstanding borrowings under its $1.6 billion unsecured credit, demonstrating solid liquidity.
The company raised its fiscal 2024 outlook, now expecting net sales of $13.2-$13.3 billion, with comparable sales growth of 3.6-4.2%. This reflects improvements from fiscal 2023 sales of $12.98 billion and 2.5% comps growth. DICK’S Sporting also maintained its projected EBT margin at 11.2% at the mid-point for fiscal 2024, showing growth from 10.8% in the prior year. Adjusted EPS is forecasted to be between $13.65 and $13.95, compared to $12.91 recorded in fiscal 2023.
What Could Derail DKS Stock’s Momentum?
Despite its strong performance and strategic initiatives, DICK’S has been dealing with increased costs stemming from an uncertain macroeconomic environment, higher wage rates, greater investments in technology, talent, and marketing to enhance its athlete experience.
In the third quarter of fiscal 2024, adjusted selling, general and administrative (SG&A) expenses saw a year-over-year increase, causing deleveraging as a percentage of sales. This resulted from the calendar shift and strategic investments in key areas such as marketing, technology and talent, alongside higher incentive compensation.
Management expects a modest deleverage in SG&A expenses for fiscal 2024 due to the investments made for future growth. Additionally, pre-opening expenses for the fiscal fourth quarter are expected to rise slightly compared to the previous year, reflecting the timing and mix of store openings.
Final Thought on DICK’S Stock
DKS stock presents an appealing option for investors fueled by its strong brand and consistent market share gains, and four strategic growth pillars. The outlook for fiscal 2024 suggests robust sales and profit growth.
However, investors should be mindful of potential risks, including elevated costs from rising wages, increased investments and the uncertain macroeconomic environment, which could affect the company’s momentum. With a Zacks Rank #3 (Hold), the stock reflects a balanced outlook, indicating neither an overly bullish nor bearish stance on future performance.
Three Picks You Can’t Miss
We have highlighted three better-ranked stocks, namely, The Gap, Inc. (GAP - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Nordstrom Inc. (JWN - Free Report) .
Gap, a leading apparel retailer, currently sports a Zacks Rank #1 (Strong Buy) at present. GAP has a trailing four-quarter earnings surprise of 101.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GAP’s current financial-year sales and earnings suggests declines of 0.8% and 41.3%, respectively, from the year-ago reported figures.
Abercrombie & Fitch, a specialty retailer of premium, high-quality casual apparel, presently flaunts a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 14.8%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales and earnings indicates growth of 15% and 69.3%, respectively, from the prior-year levels.
Nordstrom is a leading fashion specialty retailer in the United States. The company offers an extensive selection of both branded and private-label merchandise. It currently has a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Nordstrom’s fiscal 2024 sales indicates growth of 1.1% from the reported figure of fiscal 2023. JWN has a negative trailing four-quarter average earnings surprise of 30%.