In the latest trading session, Dick’s Sporting Goods (DKS) closed at $109.76, marking a -1.12% move from the previous day. This change was narrower than the S&P 500’s daily loss of 1.89%. At the same time, the Dow lost 1.3%, and the tech-heavy Nasdaq lost 0.17%.
Heading into today, shares of the sporting goods retailer had gained 6.79% over the past month, outpacing the Retail-Wholesale sector’s loss of 6.12% and the S&P 500’s loss of 1.79% in that time.
Wall Street will be looking for positivity from Dick’s Sporting Goods as it approaches its next earnings report date. In that report, analysts expect Dick’s Sporting Goods to post earnings of $3.38 per share. This would mark year-over-year growth of 39.09%. Our most recent consensus estimate is calling for quarterly revenue of $3.31 billion, up 6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.40 per share and revenue of $12.25 billion, which would represent changes of +151.63% and +27.78%, respectively, from the prior 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 business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 5.36% higher. 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 right now. For comparison, its industry has an average Forward P/E of 14.28, which means Dick’s Sporting Goods is trading at a discount to the group.
Investors should also note that DKS has a PEG ratio of 0.62 right now. 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 0.63 based on yesterday’s closing prices.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.
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DICK’S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
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