In the latest close session, Dick's Sporting Goods (DKS) was down 2.76% at $144.67. This move lagged the S&P 500's daily loss of 0.52%. Meanwhile, the Dow lost 1.24%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Prior to today's trading, shares of the sporting goods retailer had gained 11.65% outpaced the Retail-Wholesale sector's gain of 2.31% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of Dick's Sporting Goods in its upcoming release. The company is expected to report EPS of $1.39, down 32.85% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.06 billion, indicating a 21.51% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.69 per share and revenue of $22.05 billion, indicating changes of -11.44% and +28.08%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dick's Sporting Goods. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. Dick's Sporting Goods is currently a Zacks Rank #5 (Strong Sell).
From a valuation perspective, Dick's Sporting Goods is currently exchanging hands at a Forward P/E ratio of 12.73. This represents a discount compared to its industry average Forward P/E of 16.15.
Also, we should mention that DKS has a PEG ratio of 2.82. 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. DKS's industry had an average PEG ratio of 1.9 as of yesterday's close.
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 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).