Dick’s Sporting Goods (DKS, $34.08) is off to a good start for 2019
Shares of Dick’s Sporting Goods surged after the company reported quarterly earnings that beat forecasts and raised its full-year outlook. Climbing 18% over last year, the retailer’s stock was up 6.2% initially and was again 2.1% in premarket trading.
Key highlights of the quarter include: net income of $57.5 million, or 61 cents per share versus $60.1 million or 59 cents a share a year earlier; increase in sales by 0.6% to $1.92 billion higher than expected $1.9 billion; expected adjusted full-year earnings of $3.20 to $3.40 up from previous range of $3.15 to $3.35; flat overall same-store sales compared to a drop of 2.5% a year earlier; and online sales increased by 15%.
Dick’s same-store sales growth is expected to recover in the second quarter as it continues to elevate its product assortment with key brands such as YETI. The company’s hunting sales took a hit when, following a high school massacre in Parkland, Florida, it stopped selling guns to people under the age of 21. During Q3 last year, as a trial Dick removed all its hunting products from 10 stores replacing them with baseball gear and other licensed sports merchandise. The company is set to further remove hunting products from 125 other locations this year.
Overall, the results indicate that Dick’s sales have been stabilizing but it still needs more work to drive up margins by rolling out more own-brand products.
DKS in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 01, 2024
DKS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 31 cases where DKS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 50 cases where DKS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 15, 2024. You may want to consider a long position or call options on DKS as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DKS just turned positive on October 16, 2024. Looking at past instances where DKS's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DKS advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
DKS moved below its 50-day moving average on October 07, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DKS crossed bearishly below the 50-day moving average on September 16, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DKS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.988) is normal, around the industry mean (12.064). P/E Ratio (18.214) is within average values for comparable stocks, (36.044). Projected Growth (PEG Ratio) (3.827) is also within normal values, averaging (2.650). Dividend Yield (0.019) settles around the average of (0.034) among similar stocks. P/S Ratio (1.468) is also within normal values, averaging (18.679).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DKS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a retaier of sporting goods equipment, apparel and footwear
Industry SpecialtyStores