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

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Dick's Sporting Goods (DKS - Free Report) closed the most recent trading day at $201.83, moving -2.11% from the previous trading session. This move lagged the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.

Coming into today, shares of the sporting goods retailer had gained 17.92% in the past month. In that same time, the Retail-Wholesale sector gained 3.84%, while the S&P 500 gained 4.51%.

Market participants will be closely following the financial results of Dick's Sporting Goods in its upcoming release. The company is forecasted to report an EPS of $4.29, showcasing a 1.83% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.6 billion, indicating a 3.57% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.38 per share and a revenue of $13.9 billion, indicating changes of +2.35% and +3.37%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Dick's Sporting Goods. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% downward. Dick's Sporting Goods is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Dick's Sporting Goods currently has a Forward P/E ratio of 14.34. This indicates a premium in contrast to its industry's Forward P/E of 13.26.

Also, we should mention that DKS has a PEG ratio of 2.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Miscellaneous industry stood at 2.87 at the close of the market yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 28% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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