Amid an evolving retail environment, DICK's Sporting Goods, Inc. (DKS - Free Report) remains keen on enhancing its digital operations. As part of its efforts to solidify DICK'S Team Sports HQ, the company’s digital youth sports offerings platform, DICK’s Sporting announced the buyout of GameChanger Media.
A live scoring app, GameChanger provides live play-by-play updates and immediate game recaps for nearly 165,000 baseball and softball beginner teams. Also, this scoring app offers in-game information about players, coaches and fans, thereby catering well to baseball and softball viewers.
The acquisition of GameChanger is likely to strengthen DICK'S Team Sports HQ, as the former’s in-game mobile experience complements the latter’s endeavors to serve its nationwide youth, prep teams and leagues better, with enhanced tech capacities. Also, GameChanger’s ties with popular names like SportsEngine, Basketball Hall of Fame and Under Armour Association, will likely prove beneficial for DICK’S Sporting.
Launched toward the beginning of this year, DICK'S Team Sports HQ is a vital part of DICK’s Sporting’s business, which is known for its three main services. These include free league management services like websites and online registrations; FanWear shops and traditional uniforms, and access to donations and sponsorships.
DICK’S Sporting has been committed toward its Team Sports HQ business, as is evident from the fact that earlier this month, the company announced a deal between this technology service provider and Little League Baseball and Softball – the largest youth baseball and softball organization worldwide. The agreement spells out DICK'S Team Sports HQ as the suggested technology provider for Little League, which has nearly 2.4 million participants, and more than 1 million coaches, local league officials and district administrators.
Further, the addition of GameChanger marks DICK’S Sporting’s third buyout to bolster its Team Sports HQ business. Sources revealed that the company acquired Blue Sombrero and Affinity Sports, in Feb and Aug 2016, respectively, to enhance the services of its youth sports and leagues club platform.
Thus, it is obvious that DICK’S Sporting is firing on all cylinders to boost its digital strategies. In fact, the company is striving to develop every possible avenue to generate greater sales, with special focus on its ecommerce business, which generated about 9.6% of net sales in third-quarter fiscal 2016.
This Zacks Rank #3 (Hold) stock closed trading at $59.23 yesterday and has surged a whopping 67.6% on a year-to-date basis, clearly outperforming the Zacks Categorized Retail–Miscellaneous market growth of 12.5%.
Stocks to Consider
Better-ranked stocks in the same industry include Big 5 Sporting Goods Corp. (BGFV - Free Report) , Office Depot, Inc. (ODP - Free Report) and ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Big 5 Sporting has an average positive earnings surprise of 4.8% in the trailing four quarters. The stock, with a long-term growth rate of 12%, has seen positive estimate revisions in the last 30 days.
Office Depot, with a long-term growth rate of 10.3%, has witnessed positive estimate revisions over the past 30 days.
ULTA Salon’s solid long-term EPS growth rate of 19.5% and positive estimate revisions over the past 30 days help it stand strong in the industry. Further, the company flaunts a spectacular earnings history.
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