Dick’s Sporting Goods (DKS) shares move -1.12%: What you need to know
This story originally appeared on Zacks
Last trading session, Dick’s Sporting Goods (DKS) closed at $109.76, marking a -1.12% move from the previous day. That change was narrower than the S&P 500’s 1.89% daily loss. At the same time, the Dow Jones lost 1.3% and the tech-heavy Nasdaq lost 0.17%.
Going into today, shares of the sporting goods retailer had gained 6.79% over the past month, outpacing the retail and wholesale sector’s 6.12% loss and the loss of 1.79% of the S&P 500 during this period.
Wall Street will be looking for positivity from Dick’s Sporting Goods as its next earnings report date nears. In that report, analysts expect Dick’s Sporting Goods to post earnings of $3.38 per share. This would mark a year-over-year growth of 39.09%. Our most recent consensus estimate calls for quarterly revenue of $3.31 billion, up 6% from the prior year period.
For the full year, our Zacks consensus estimates call for earnings of $15.40 per share and revenue of $12.25 billion, which would represent changes of +151.63% and +27, 78%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Dick’s Sporting Goods. These recent revisions tend to reflect the evolving nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Over the past month, the Zacks Consensus EPS estimate rose 5.36%. Dick’s Sporting Goods currently has a Zacks rank of #2 (buy).
Valuation is also important, so investors should note that Dick’s Sporting Goods has a forward P/E ratio of 7.21 at this time. For comparison, its industry has an average PER of 14.28, which means Dick’s Sporting Goods is trading at a discount to the group.
Investors should also note that DKS currently has a PEG ratio of 0.62. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. Retail – Miscellaneous stocks hold, on average, a PEG ratio of 0.63 based on yesterday’s closing prices.
The Retail – Miscellaneous industry is part of the Retail – Wholesale sector. This industry currently has a Zacks industry ranking of 64, which places it in the top 26% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock movement metrics, and more, at Zacks.com.
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DICK’S Sporting Goods, Inc. (DKS): Free Inventory Analysis Report
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