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Is Dick's Sporting Goods (DKS) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Dick's Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.24. This compares to its industry's average Forward P/E of 14.80. Over the past 52 weeks, DKS's Forward P/E has been as high as 13.21 and as low as 9.40, with a median of 11.44.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DKS has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.54.
Finally, investors should note that DKS has a P/CF ratio of 6.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.45. DKS's P/CF has been as high as 6.92 and as low as 5.18, with a median of 6.12, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dick's Sporting Goods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DKS feels like a great value stock at the moment.
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Is Dick's Sporting Goods (DKS) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Dick's Sporting Goods (DKS - Free Report) . DKS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.24. This compares to its industry's average Forward P/E of 14.80. Over the past 52 weeks, DKS's Forward P/E has been as high as 13.21 and as low as 9.40, with a median of 11.44.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DKS has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.54.
Finally, investors should note that DKS has a P/CF ratio of 6.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.45. DKS's P/CF has been as high as 6.92 and as low as 5.18, with a median of 6.12, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dick's Sporting Goods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DKS feels like a great value stock at the moment.