Dick's Sporting Goods (DKS) Stock Drops Despite Market Gains: Important Facts to Note
Dick’s Sporting Goods (DKS) closed at $132.85 in the latest trading session, marking a -1.07% move from the prior day. The stock’s change was less than the S&P 500’s daily gain of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.04%.
Coming into today, shares of the sporting goods retailer had lost 2.22% in the past month. In that same time, the Retail-Wholesale sector lost 5.49%, while the S&P 500 lost 0.35%.
The investment community will be closely monitoring the performance of Dick’s Sporting Goods in its forthcoming earnings report. The company is predicted to post an EPS of $1.39, indicating a 32.85% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.06 billion, up 21.51% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.7 per share and a revenue of $22.05 billion, indicating changes of -11.36% and +28.08%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Dick’s Sporting Goods. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, the Zacks Consensus EPS estimate has shifted 0.18% downward. Dick’s Sporting Goods is currently a Zacks Rank #5 (Strong Sell).
Looking at valuation, Dick’s Sporting Goods is presently trading at a Forward P/E ratio of 11.47. This represents a discount compared to its industry average Forward P/E of 15.15.
It’s also important to note that DKS currently trades at a PEG ratio of 2.54. 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 average PEG ratio for the Retail – Miscellaneous industry stood at 1.63 at the close of the market yesterday.