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Dick's Sporting Goods (DKS) Beats Stock Market Upswing: What Investors Need to Know

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Dick's Sporting Goods (DKS - Free Report) closed at $216.79 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.78%. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq increased by 0.61%.

Shares of the sporting goods retailer witnessed a gain of 20.4% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.49%, and the S&P 500's gain of 5.88%.

The investment community will be closely monitoring the performance of Dick's Sporting Goods in its forthcoming earnings report. It is anticipated that the company will report an EPS of $4.29, marking a 1.83% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.6 billion, indicating a 3.57% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.38 per share and revenue of $13.9 billion, indicating changes of +2.35% and +3.37%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Dick's Sporting Goods should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% downward. Right now, Dick's Sporting Goods possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dick's Sporting Goods has a Forward P/E ratio of 14.93 right now. This indicates a premium in contrast to its industry's Forward P/E of 14.07.

One should further note that DKS currently holds a PEG ratio of 3.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Miscellaneous industry currently had an average PEG ratio of 3.04 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DKS in the coming trading sessions, be sure to utilize Zacks.com.


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