DICK’S Sporting Goods Inc. (DKS:NYE) Analysts rate as a Buy, $124 target

STA Research
by: STA Research

Based on DICK’S Sporting Goods Inc. stock forecasts from 16 analysts, the average analyst target price for DICK’S Sporting Goods Inc. is USD 124.04 over the next 12 months. DICK’S Sporting Goods Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of DICK’S Sporting Goods Inc. is Bullish, which is based on 12 positive signals and 2 negative signals. At the last closing, DICK’S Sporting Goods Inc.’s stock price was USD 84.70. DICK’S Sporting Goods Inc.’s stock price has changed by +9.43% over the past week, -11.72% over the past month and -13.15% over the last year.

Just recently the target on the stock was lowered by Stephens & Co. to $102 from $122, and maintained the Equal Weight rating.

DICK’S Sporting Goods, Inc. and its subsidiaries operate predominantly in the eastern United States as a sporting goods retailer. E-commerce websites and mobile applications are used to sell the company’s products. It had 730 DICK’S Sporting Goods locations as of January 29, 2022. Dick’S Clothing and Sporting Goods, Inc. was the company’s previous name until April 1999, when it changed to DICK’S Sporting Goods, Inc. DICK’S Sporting Goods, Inc. is based in Coraopolis, Pennsylvania, and was founded in 1948.

 

What we like:

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector.

 

Analysts rate DICK’S Sporting Goods stock with a consensus Buy rating with a 12-month average target price of $124.04 per share.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

 

 

Disclaimer

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