Dick's Sporting Goods (DKS) Beats Stock Market Upswing: What Investors Need to Know

In the latest trading session, Dick's Sporting Goods (DKS) closed at $214.63, marking a +2.05% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.

The stock of sporting goods retailer has risen by 13.8% in the past month, leading the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 4.37%.

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 $4.29 per share, which would represent a year-over-year decline of 1.83%. Simultaneously, our latest consensus estimate expects the revenue to be $3.6 billion, showing a 3.57% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.38 per share and revenue of $13.9 billion. These totals would mark changes of +2.35% and +3.37%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dick's Sporting Goods. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. At present, Dick's Sporting Goods boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Dick's Sporting Goods is holding a Forward P/E ratio of 14.63. Its industry sports an average Forward P/E of 14.37, so one might conclude that Dick's Sporting Goods is trading at a premium comparatively.

It is also worth noting that DKS currently has a PEG ratio of 3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Miscellaneous was holding an average PEG ratio of 2.88 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 37% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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