Prior to today’s trading, shares of the sporting goods retailer had gained 3.16% over the past month. This has outpaced the Retail-Wholesale sector’s gain of 0.22% and lagged the S&P 500’s gain of 4.09% in that time.
Investors will be hoping for strength from DKS as it approaches its next earnings release. In that report, analysts expect DKS to post earnings of $2.60 per share. This would mark a year-over-year decline of 19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 3.46% from the year-ago period.
DKS’s full-year Zacks Consensus Estimates are calling for earnings of $8.92 per share and revenue of $10.82 billion. These results would represent year-over-year changes of +45.75% and +12.92%, respectively.
Investors might also notice recent changes to analyst estimates for DKS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.28% higher. DKS is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, DKS currently has a Forward P/E ratio of 11.71. This valuation marks a discount compared to its industry’s average Forward P/E of 15.68.
It is also worth noting that DKS currently has a PEG ratio of 1.65. 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. Retail – Miscellaneous stocks are, on average, holding a PEG ratio of 1.49 based on yesterday’s closing prices.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.