What do the Fundamentals Predict for Dicks Sporting Items Inc (DKS) Inventory?

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InvestorsObserver gives Dick’s Sporting Goods Inc (DKS) a strong rating of 83 from its analysis. The proprietary rating system takes into account a company’s underlying health by analyzing its stock price, earnings, and rate of growth. Based on these key figures, DKS currently holds a better value than 83% of the shares. Long-term investors who focus on buy-and-holding should find the review ranking system most relevant to their investment decisions.

Today DKS has a rating of 83. Find out what that means for you and get the rest of the rankings on DKS!

Metric analysis

For the past twelve months, DKS has a price-earnings-ratio (PE) of 10.3. The historical average of around 15 shows an average value for the DKS share, as investors pay fair share prices in relation to the company’s profits. DKS’s average trailing P / E ratio shows that the company has been trading for its fair market value recently. The trailing 12-month earnings per share (EPS) of 12.06 justify the current price of the share. However, the trailing P / E ratios do not take into account the company’s forecast growth rate, which means that many newer companies have high P / E ratios due to their high growth potential and attract investors despite insufficient profits. DKS currently has a 12-month forward PE-to-growth (PEG) ratio of 0.75. The market is currently undervaluing DKS in terms of forecast growth as the PEG rate is below the fair market value of 1. DKS’s PEG is the forward price / earnings ratio divided by its growth rate. Because the PEG metrics contain more fundamentals of a company’s overall health with an added focus on the future, they are one of the most widely used valuation metrics by analysts.

summary

The valuation metrics of DKS are strong due to an undervalued PEG ratio despite strong growth at the current price. The P / E and the PEG of the DKS are above the market average, which leads to an above-average valuation result. For the full report on the shares of Dicks Sporting Goods Inc (DKS), click here.