In the latest trading session, Dick's Sporting Goods (DKS) closed at $136.65, marking a +1.5% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.6%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.64%.
Coming into today, shares of the sporting goods retailer had gained 1.12% in the past month. In that same time, the Retail-Wholesale sector lost 1.58%, while the S&P 500 gained 1.34%.
The investment community will be paying close attention to the earnings performance of Dick's Sporting Goods in its upcoming release. On that day, Dick's Sporting Goods is projected to report earnings of $1.39 per share, which would represent a year-over-year decline of 32.85%. Meanwhile, our latest consensus estimate is calling for revenue of $5.06 billion, up 21.51% from the prior-year quarter.
DKS's full-year Zacks Consensus Estimates are calling for earnings of $11.69 per share and revenue of $22.05 billion. These results would represent year-over-year changes of -11.44% and +28.08%, respectively.
Investors might also notice recent changes to analyst estimates for Dick's Sporting Goods. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% downward. Right now, Dick's Sporting Goods possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Dick's Sporting Goods is presently being traded at a Forward P/E ratio of 11.52. For comparison, its industry has an average Forward P/E of 14.86, which means Dick's Sporting Goods is trading at a discount to the group.
It's also important to note that DKS currently trades at a PEG ratio of 2.55. 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 industry had an average PEG ratio of 1.69 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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).