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.
