In the latest trading session, Dick’s Sporting Goods (DKS Quick QuoteDCS – Free Report) closed at $103.85, marking a -0.89% move from the previous day. This change lagged the S&P 500’s 0.72% loss on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Prior to today’s trading, shares of the sporting goods retailer had lost 5.6% over the past month. This has lagged the Retail-Wholesale sector’s loss of 4.26% and was narrower than the S&P 500’s loss of 5.92% in that time.
Wall Street will be looking for positivity from Dick’s Sporting Goods as it approaches its next earnings report date. This is expected to be March 8, 2022. The company is expected to report EPS of $3.38, up 39.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.31 billion, up 6% from the year-ago period.
Any recent changes to analyst estimates for Dick’s Sporting Goods should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dick’s Sporting Goods is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Dick’s Sporting Goods is currently trading at a Forward P/E ratio of 9.45. This represents a discount compared to its industry’s average Forward P/E of 10.76.
Meanwhile, DKS’s PEG ratio is currently 0.81. 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. Retail – Miscellaneous stocks are, on average, holding a PEG ratio of 0.68 based on yesterday’s closing prices.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.