Dick's Sporting Goods (DKS) Outperforms the Market: Discover the Reasons

Dick's Sporting Goods Outperforms Broader Market

At the close of the latest trading day, Dick's Sporting Goods (DKS) finished at $214.76, marking a 1.07% increase from its previous closing value. This gain surpassed the S&P 500's daily rise of 0.81%. In comparison, the Dow advanced by 0.63%, while the tech-focused Nasdaq climbed 1.26%.

Over the past month, shares of this sporting goods retailer have appreciated by 3.25%. This performance stands out against the Retail-Wholesale sector, which declined by 4.99%, and the S&P 500, which slipped by 0.25% during the same period.

Upcoming Earnings and Analyst Expectations

Investors are keeping a close eye on Dick's Sporting Goods as it prepares to announce its next earnings report, scheduled for March 12, 2026. Analysts forecast earnings per share (EPS) of $3.43, which would represent a 5.25% decrease from the same quarter last year. Revenue is projected to reach $6.1 billion, a significant 56.69% increase year-over-year, according to the Zacks Consensus Estimate.

For the full fiscal year, consensus estimates suggest Dick's Sporting Goods will achieve earnings of $13.29 per share on revenue of $17.07 billion. These figures would reflect a 5.41% drop in EPS and a 27.02% rise in revenue compared to the previous year.

Analyst Estimate Revisions and Market Impact

Recent changes in analyst forecasts for Dick's Sporting Goods highlight the dynamic nature of short-term business trends. Upward revisions typically signal increased confidence in the company's future performance and profitability.

Research shows that such estimate adjustments are closely linked to short-term stock price movements. To help investors capitalize on these trends, Zacks has developed its proprietary ranking system, the Zacks Rank, which incorporates estimate changes to provide actionable stock ratings.

Zacks Rank and Stock Performance

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven history of outperformance, with #1 ranked stocks delivering an average annual return of 25% since 1988. Over the last month, the consensus EPS estimate for Dick's Sporting Goods has been revised downward by 0.25%. Currently, the stock holds a Zacks Rank of #3 (Hold).

Valuation Metrics

At present, Dick's Sporting Goods trades at a Forward Price-to-Earnings (P/E) ratio of 14, which is lower than the industry average Forward P/E of 17.43. The company's Price/Earnings to Growth (PEG) ratio stands at 2.76, slightly above the Retail - Miscellaneous industry average of 2.71 as of the previous trading session. The PEG ratio, unlike the standard P/E, also factors in anticipated earnings growth.

Industry Overview

The Retail - Miscellaneous industry, a segment within the Retail-Wholesale sector, currently holds a Zacks Industry Rank of 92, placing it among the top 38% of more than 250 industries. The Zacks Industry Rank is determined by the average Zacks Rank of the companies within each industry. Historically, industries in the top half of the rankings have outperformed those in the lower half by a two-to-one margin.

For ongoing updates and analysis on these and other key stock metrics, be sure to visit Zacks.com during upcoming trading sessions.

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