In the latest trading session, Dick's Sporting Goods (DKS) closed at $187.35, marking a -0.21% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, added 1.52%.
Heading into today, shares of the sporting goods retailer had lost 11.16% over the past month, lagging the Retail-Wholesale sector's loss of 0.09% and the S&P 500's loss of 0.7% in that time.
The upcoming earnings release of Dick's Sporting Goods will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.21, reflecting a 2.73% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.11 billion, reflecting a 3.14% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.32 per share and a revenue of $13.85 billion, signifying shifts of +1.92% and +3.06%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Dick's Sporting Goods. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Dick's Sporting Goods holds a Zacks Rank of #3 (Hold).
With respect to valuation, Dick's Sporting Goods is currently being traded at a Forward P/E ratio of 13.11. This represents a discount compared to its industry's average Forward P/E of 13.82.
It is also worth noting that DKS currently has a PEG ratio of 2.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Miscellaneous industry had an average PEG ratio of 1.47 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 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.
To follow DKS in the coming trading sessions, be sure to utilize Zacks.com.
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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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