Dick's Sporting Goods (DKS) closed at $43.75 in the latest trading session, marking a -1.06% move from the prior day. This move lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 1.13%.
Prior to today's trading, shares of the sporting goods retailer had lost 8.26% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 2.95% in that time.
Investors will be hoping for strength from DKS as it approaches its next earnings release. In that report, analysts expect DKS to post earnings of $1.23 per share. This would mark year-over-year growth of 14.95%. Meanwhile, our latest consensus estimate is calling for revenue of $2.56 billion, up 2.85% from the prior-year quarter.
Any recent changes to analyst estimates for DKS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DKS is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, DKS is currently trading at a Forward P/E ratio of 11.63. Its industry sports an average Forward P/E of 12.38, so we one might conclude that DKS is trading at a discount comparatively.
Also, we should mention that DKS has a PEG ratio of 2.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous was holding an average PEG ratio of 1.53 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.