Dick’s Sporting Goods Inc Stock Forecast:
According to a consensus of 20 analysts, the estimated average target price for shares of Dick’s Sporting Goods Inc. (DKS:NYE) is USD 144.75 for the next 12 months. The average analyst rating for the stock is Strong Buy. Stock Target Advisor’s analysis of the stock suggests a Slightly Bullish outlook, based on 9 positive and 4 negative signals. Currently, the stock is trading at USD 146.79. Over the past week, the stock price has increased by +14.12%, over the past month by +9.28%, and over the last year by +47.53%.
Analysts Coverage Change:
- Morgan Stanley & Co. maintains an Overweight rating on (DKS:NYE) and raises the target price to $175 from $165.
- Telsey Advisory Group maintains an Outperform rating and raises the target price $165 from $135.
- Barclays maintains an Overweight rating and raises the target price to $174 from $139.
- Bank of America Merrill Lynch maintains a Buy rating and raises the target price to $170 from $145.
- Oppenheimer & Co. maintains an Outperform rating and raises the target price to $175 from $138.
- Citigroup maintains a Neutral rating and raises the target price to $144 from $140.
Dick’s Sporting Goods News:
On Tuesday morning Dick’s Sporting Goods (DKS:NYE) reported their fourth-quarter revenue totaled $2.62 billion, an increase of 9% compared to the same period last year, and beating estimates of $2.49 billion. Earnings per share (EPS) were $2.43, surpassing the consensus estimate of $2.22.
According to CEO Ed Stack, the company has been working on optimizing its inventory management, resulting in fewer promotions and less clearance inventory. As a result, inventory levels are now in “great shape,” which has allowed the company to offer strong earnings guidance for the full year.
Investors have responded positively to the news, with the company’s shares jumping 11% in early trading. The strong results and upbeat forecast suggest that Dick’s Sporting Goods is well-positioned for the busy spring season.
Positive Fundamentals:
Dick’s Sporting Goods is a large and stable company with a high market capitalization. It has delivered superior risk-adjusted and total returns, outperforming its sector peers on both average annual total returns and dividend returns basis. The company has also demonstrated superior capital utilization, positive cash flow, positive free cash flow, and top-quartile earnings and dividend growth in the previous 5 years compared to its sector. This stock can be a good buy for investors seeking high income yields.
Negative Fundamentals:
Investors may not like investing in Dick’s Sporting Goods due to its high volatility, which is above the sector median over the past five years. The stock is also overpriced compared to its peers on both a price-to-earnings and price-to-book value basis. Additionally, the company is highly leveraged compared to its sector peers, which may indicate a riskier investment. However, it’s important to consider external factors such as the company’s growth strategy and management statements before making a final decision.
FA Score (Fundamental Analysis):
The fundamental analysis of Dick’s Sporting Goods Inc. is “Slightly Bullish” with a FA score of 6.9 out of 10, where 0 is very bearish and 10 is very bullish.
