In the latest close session, Dick's Sporting Goods (DKS) was down 1.05% at $230.40. The stock's change was less than the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.39%.
Prior to today's trading, shares of the sporting goods retailer had gained 10.77% outpaced the Retail-Wholesale sector's gain of 0.29% and the S&P 500's gain of 3.94%.
The upcoming earnings release of Dick's Sporting Goods will be of great interest to investors. On that day, Dick's Sporting Goods is projected to report earnings of $2.72 per share, which would represent a year-over-year decline of 1.09%. Alongside, our most recent consensus estimate is anticipating revenue of $3.17 billion, indicating a 3.82% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.38 per share and revenue of $13.97 billion. These totals would mark changes of +2.35% and +3.89%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Dick's Sporting Goods. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Dick's Sporting Goods currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Dick's Sporting Goods is currently trading at a Forward P/E ratio of 16.19. This expresses a premium compared to the average Forward P/E of 15.94 of its industry.
It's also important to note that DKS currently trades at a PEG ratio of 3.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 2.57 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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