Dick’s Sporting Items (DKS) Dips Extra Than Broader Markets: What You Ought to Know

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This story originally appeared on Zacks

In the latest trading session, Dick’s Sporting Goods (DKS) closed at $110, marking a -1.62% move from the previous day. This change lagged the S&P 500’s 0.38% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

– Zacks

Heading into today, shares of the sporting goods retailer had gained 0.18% over the past month, outpacing the Retail-Wholesale sector’s loss of 6.47% and the S&P 500’s loss of 6.25% in that time.

Investors will be hoping for strength from Dick’s Sporting Goods as it approaches its next earnings release, which is expected to be March 8, 2022. On that day, Dick’s Sporting Goods is projected to report earnings of $3.38 per share, which would represent year- over-year growth of 39.09%. Meanwhile, our latest consensus estimate is calling for revenue of $3.31 billion, up 6% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Dick’s Sporting Goods. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% higher. Dick’s Sporting Goods is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Dick’s Sporting Goods has a Forward P/E ratio of 10.08 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 11.7.

It is also worth noting that DKS currently has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. DKS’s industry had an average PEG ratio of 0.7 as of yesterday’s close.

The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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DICK’S Sporting Goods, Inc. (DKS): Free Stock Analysis Report

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