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Dick's Sporting Goods (DKS) Stock Sinks As Market Gains: Here's Why
Dick's Sporting Goods (DKS) closed the most recent trading day at $182.83, moving -0.65% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.02%.
The sporting goods retailer's stock has dropped by 0.82% in the past month, falling short of the Retail-Wholesale sector's gain of 13.17% and the S&P 500's gain of 13.05%.
Investors will be eagerly watching for the performance of Dick's Sporting Goods in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 28, 2025. The company is forecasted to report an EPS of $3.21, showcasing a 2.73% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.11 billion, indicating a 3.02% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.31 per share and revenue of $13.84 billion. These totals would mark changes of +1.85% and +2.97%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dick's Sporting Goods. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Dick's Sporting Goods presently features a Zacks Rank of #4 (Sell).
Looking at its valuation, Dick's Sporting Goods is holding a Forward P/E ratio of 12.86. This indicates a discount in contrast to its industry's Forward P/E of 13.79.
Investors should also note that DKS has a PEG ratio of 2.33 right now. 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 2.33 at the close of the market yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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