Dick’s Sporting Goods (DKS) closed at $138.59 in the latest trading session, marking a -1.18% move from the prior day. This move lagged the S&P 500’s daily loss of 0.14%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the sporting goods retailer had gained 13.15% in the past month. In that same time, the Retail-Wholesale sector gained 3.83%, while the S&P 500 gained 5.04%.
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 November 23, 2021. On that day, Dick’s Sporting Goods is projected to report earnings of $1.88 per share, which would represent a year-over-year decline of 6.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 0.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.91 per share and revenue of $11.69 billion, which would represent changes of +110.95% and +21.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dick’s Sporting Goods. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.22% higher. Dick’s Sporting Goods currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Dick’s Sporting Goods is holding a Forward P/E ratio of 10.86. For comparison, its industry has an average Forward P/E of 18.73, which means Dick’s Sporting Goods is trading at a discount to the group.
It is also worth noting that DKS currently has a PEG ratio of 0.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Retail – Miscellaneous stocks are, on average, holding a PEG ratio of 1.13 based on yesterday’s closing prices.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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