Dick's Sporting Goods (DKS) closed at $207.67 in the latest trading session, marking a -2.03% move from the prior day. This move lagged the S&P 500's daily gain of 0.55%. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.91%.
Shares of the sporting goods retailer have appreciated by 0.83% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.28%, and outperforming the S&P 500's gain of 0.71%.
The investment community will be paying close attention to the earnings performance of Dick's Sporting Goods in its upcoming release. The company is predicted to post an EPS of $3.49, indicating a 3.59% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.1 billion, indicating a 56.7% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.13 per share and revenue of $17.8 billion, indicating changes of -6.55% and +32.42%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Dick's Sporting Goods. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dick's Sporting Goods presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dick's Sporting Goods has a Forward P/E ratio of 16.15 right now. This expresses a discount compared to the average Forward P/E of 20.87 of its industry.
One should further note that DKS currently holds a PEG ratio of 3.33. 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. As of the close of trade yesterday, the Retail - Miscellaneous industry held an average PEG ratio of 2.91.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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