The Zacks Retail and Wholesale sector has sailed through rough waters in 2022, down more than 20% and underperforming the S&P 500 by a fair margin.
A company that many are familiar with, DICK’S Sporting Goods DKS, is on deck to unveil quarterly earnings on November 22nd, before the market opens.
The company operates as a significant omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
Currently, DKS carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an A.
How does everything else stack up heading into the release? Let’s take a closer look.
Share Performance & Valuation
DKS shares have been much stronger than the S&P 500 year-to-date, down roughly 6%.
Image Source: Zacks Investment Research
Over the last month, however, DKS shares have declined 2.7%, widely lagging behind the S&P 500’s 5.3% gain.
Image Source: Zacks Investment Research
The near-term price action of DKS shares indicates that sellers have taken a tight grip as of late.
The company’s shares currently trade at a 9.5X forward earnings multiple, nicely beneath the 11.1X five-year median and representing a 61% discount relative to the Zacks Retail and Wholesale sector.
Image Source: Zacks Investment Research
DKS sports a Style Score of an A for Value.
Quarterly Estimates
A singular analyst has upped their outlook over the last several months, with the Zacks Consensus EPS Estimate of $2.24 indicating a 30% drop in earnings Y/Y.
Image Source: Zacks Investment Research
The company’s top-line looks to marginally contract; the Zacks Consensus Sales Estimate of $2.7 billion indicates a 1.7% Y/Y drop.
Quarterly Performance
DKS is on an impressive earnings streak, exceeding both earnings and revenue estimates in nine consecutive quarters.
Just in its latest print, the company registered a 4.3% bottom-line beat paired with a 1.2% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
DKS shares have been stronger than the general market year-to-date but have lagged over the last month.
Shares aren’t expensive, with the company’s forward earnings multiple well beneath its five-year median and Zacks sector average.
One analyst has upped their earnings outlook as of late, with estimates alluding to a Y/Y drop in both earnings and revenue.
Further, the company has consistently exceeded quarterly results, chaining together a long streak of positive surprises.
Heading into the release, Dick’s Sporting Goods DKS carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 17.2%.
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DICK’S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
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