Dick's Sporting Goods (DKS): looking solid before the earnings

2:12 am ET, 29 Aug 2018

Dick's Sporting Goods Inc (DKS) shares are trading at $37.54.  The company is announcing its quarterly earnings on Wednesday before the bell.  What should you know about Dick's prior to the earnings? What's DKS stock price forecast?

Dick’s is the largest full-line sporting goods retailer with a national store base and a high-quality, growing e-commerce business. Dick’s controls approximately 12% of the sporting goods industry.  

Dick’s has fared better than competitors due to its execution and company-specific initiatives, including Dick’s Team Sports HQ, a technology platform for youth sports leagues, private brands (12% of sales) including Calia and Reebok, and strong partnerships with vendors, which prefer to work with national retailers like Dick’s.

Dick’s is slowing its unit growth in an effort to secure better leasing terms over the next two to three years as it suspects competitor closures may create a better supply/demand environment. This move is prudent given the structural shift in the retail industry (particularly vendor efforts to move more sales direct to consumer at the likes of Nike and Under Armour). 

To take advantage of growing online penetration, the firm completed a proprietary buildout of its own e-commerce platform in January (formerly managed by eBay) to enable better control over its customer experience and access to more customer data. 

What is the sentiment towards the DKS stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Dick's Sporting Goods (DKS) returned +6.35%.

Dick's Sporting Goods (DKS) short share of float is 15.6%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Dick's Sporting Goods Inc (DKS) average analyst price target ($35.23) is -2.19% below its current price ($36.02)

For the latest price and information on Dick's Sporting Goods Inc, please visit Finstead and search for "DKS price" or "DKS news".

Dick's Sporting Goods Inc (DKS) Stock Guide

Updated at: 4:36 pm ET, 17 Sep 2020

Before we start: if you're looking for DKS stock price, you can quickly find it out by visiting Finny and typing "DKS quote". If you're looking for a quick scoop on DKS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "DKS". You'll get all this info in one place. Or you can just type "DKS news" to get the latest stock news.

Looking to buy or sell Dick's Sporting Goods Inc (DKS)? Interested in getting the full scoop on DKS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this DKS stock guide, we'll address key questions about DKS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are DKS earnings?
2. What is DKS dividend?
3. What is DKS dividend yield?
4. What is DKS stock forecast (i.e., prediction)?
5. DKS buy or sell? What is DKS Finny Score?
6. What are the reasons to buy DKS? Why should I buy DKS stock?
7. What are the reasons to sell DKS? Why should I sell DKS stock?
8. What are DKS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are DKS earnings?

DKS trailing 12-month earnings per share (EPS) is $3.01.

2. What is DKS dividend?

DKS forward dividend is $1.25.

3. What is DKS dividend yield?

DKS forward dividend yield is 2.31%.

Analyst Predictions

4. What is DKS stock forecast (i.e., prediction)?

Based on DKS analyst price targets, DKS stock forecast is $61.78 (for a year from now). That means the average analyst price target for DKS stock is $61.78. The prediction is based on 32 analyst estimates.

The low price target for DKS is $53.00, while the high price target is $75.00.

DKS analyst rating is Hold.

Analysis

5. DKS buy or sell? What is DKS Finny Score?

#{finnyScore:63}Our quantitative analysis shows 5 reasons to buy and 3 reasons to sell DKS, resulting in Finny Score of 63.

6. What are the reasons to buy DKS? Why should I buy DKS stock?

Here are the reasons to buy DKS stock:

  • By focusing on higher-quality performance sporting goods, Dick's minimizes direct competition with mass merchants. Management estimates that only 10% of its products overlap with mass merchants, with vendors frequently offering special makes or colors for Dick's.
  • Dick's remains a key outlet for high-performance brands that drive guest traffic, such as Nike, North Face, Columbia, Adidas, TaylorMade, Callaway, and Under Armour.
  • National advertising campaigns and an Olympic retail partnership should create higher brand awareness and promote greater e-commerce sales.
  • DKS quarterly revenue growth was 20.10%, higher than the industry and sector average revenue growth (0.81% and 0.78%, respectively). See DKS revenue growth chart.
  • DKS profitability is improving. The YoY profit margin change was 0.03 percentage points. See DKS profitability chart.
  • DKS forward dividend yield is 2.31%, higher than the industry (0.24%) and sector (0.55%) forward dividend yields. See DKS forward dividend chart.
  • DKS forward P/E ratio is 13.38, which is low compared to its industry peers’ P/E ratios. See DKS forward P/E ratio chart.
  • DKS cash to debt ratio is 0.33, higher than the average industry (0.16) and sector (0.13) cash to debt ratio. See DKS cash to debt chart.

7. What are the reasons to sell DKS? Why should I sell DKS stock?

Let's look at the reasons to sell DKS stock (i.e., the bear case):

  • The sporting goods industry is mature, with only GDP-like growth of 2%-3% over the past decade and increased competition from mass merchants and online retailers.
  • Retail store expansion from key manufacturers such as Nike and Under Armour or outdoor retailers like the combined Bass Pro Shops/Cabela's could drive greater competition for customers and for real estate.
  • Declines in youth sports participation and long-term declines in golf rounds played could present long-run risks to Dick's growth aspirations.
  • DKS stock price ($58.55) is close to the 52-week high ($58.68). Perhaps now is a good time to sell? See DKS price chart.
  • DKS short share of float is 24.46%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See DKS short share of float chart.
  • DKS short interest (days to cover the shorts) ratio is 7.89. The stock garners more short interest than the average industry, sector or S&P 500 stock. See DKS short interest ratio chart.

Key Stats

8. What are DKS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for DKS:

Metrics DKS
Price $57.78
Average Price Target / Upside $61.78 / 6.92%
Average Analyst Rating Hold
Forward Dividend Yield 2.31%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 45,200
Market Cap $5.04B
Forward P/E Ratio 13.38
Price/Book Ratio 0.59
Revenue (TTM) $8.62B
YoY Quarterly Revenue Growth 20.10%
Profit Margin 3.03%

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