In the latest market close, Dick's Sporting Goods (DKS) reached $220.38, with a -1.9% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 1.21%.
The the stock of sporting goods retailer has fallen by 9.99% in the past month, lagging the Retail-Wholesale sector's gain of 1.04% and the S&P 500's loss of 0.47%.
The investment community will be paying close attention to the earnings performance of Dick's Sporting Goods in its upcoming release. The company is slated to reveal its earnings on March 11, 2025. The company is predicted to post an EPS of $3.47, indicating a 9.87% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.75 billion, showing a 3.25% drop compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dick's Sporting Goods. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% increase. Dick's Sporting Goods currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Dick's Sporting Goods is holding a Forward P/E ratio of 15.19. For comparison, its industry has an average Forward P/E of 15.24, which means Dick's Sporting Goods is trading at a discount to the group.
One should further note that DKS currently holds a PEG ratio of 2.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Miscellaneous industry was having an average PEG ratio of 2.01.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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