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Dick's Sporting Goods (DKS) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Dick's Sporting Goods (DKS) closed at $187.35, marking a -0.21% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, added 1.52%.

Heading into today, shares of the sporting goods retailer had lost 11.16% over the past month, lagging the Retail-Wholesale sector's loss of 0.09% and the S&P 500's loss of 0.7% in that time.

The upcoming earnings release of Dick's Sporting Goods will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.21, reflecting a 2.73% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.11 billion, reflecting a 3.14% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.32 per share and a revenue of $13.85 billion, signifying shifts of +1.92% and +3.06%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Dick's Sporting Goods. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Dick's Sporting Goods holds a Zacks Rank of #3 (Hold).

With respect to valuation, Dick's Sporting Goods is currently being traded at a Forward P/E ratio of 13.11. This represents a discount compared to its industry's average Forward P/E of 13.82.

It is also worth noting that DKS currently has a PEG ratio of 2.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Miscellaneous industry had an average PEG ratio of 1.47 as trading concluded yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 26% of all 250+ industries.