Yahoo Finanza Dick’s Sporting on Track to Beat Earnings Estimates Again
The sporting goods retailer Dick’s Sporting Goods is expected to deliver earnings per share of $2.75 in the holiday quarter, which represents year-over-year growth of over 13% from $2.43 per share seen in the same period a year ago.
The Coraopolis Pennsylvania-based company would post revenue growth of more than 5% to $3.29 billion from $3.13 billion a year earlier. The company has beaten consensus earnings estimates in most of the quarters in the last two years, at least.
“Reasons To Buy: DICK’S Sporting’s fiscal third-quarter results gained from the solid online show and favourable customer demand. Management also raised fiscal 2021 view,” noted analysts at ZACKS Research. The company anticipates sales of $12,120-$12,190 million in the fiscal year 2021, same-store sales of 24-25% and adjusted earnings of $14.6-$14.
At the time of writing, Dick’s stock traded 2.4% lower at $109.69 on Friday. The stock fell nearly 3% so far this year after surging over 113% in 2021.
Analyst Comments
“Dick’s Sporting Goods (DKS) is in a favourable position given its category dominance, industry tailwinds, and healthy balance sheet. Its outlook within the category is likely to be even stronger post-COVID-19. We see a positive risk/reward skew based on our view the earnings power of the business is underappreciated. Key drivers include merchandise margin expansion and capital return (buybacks). We think there is upside for the stock without underwriting a higher valuation multiple as a result,” noted Simeon Gutman, equity analyst at Morgan Stanley.
“The stock’s multiple has not broken out like it has for other retailers in our space which should emerge stronger post-COVID-19. The potential for multiple expansion adds optionality/upside to the bull case.”
Dick’s Sporting Goods Stock Price Forecast
Thirteen analysts who offered stock ratings for Dick’s in the last three months forecast the average price in 12 months of $150.50 with a high forecast of $180.00 and a low forecast of $120.00.
The average price target represents a 37.08% change from the last price of $109.79. Of those 13 analysts, nine rated “Buy”, four rated “Hold”, while none rated “Sell”, according to Tipranks.
Morgan Stanley gave the base target price to $145 with a high of $230 under a bull scenario and $75 under the worst-case scenario. The investment bank gave an “Overweight” rating on the sporting goods retail company’s stock.
Several analysts have also updated their stock outlook. Cowen and company lifted the target price to $161 from $154. Citigroup lowered the price target to $161 from $170. UBS slashed the price objective to $120 from $148.
However, technical analysis suggests it is good to hold for now as 100-day Moving Average and 100-200-day MACD Oscillator gives mixed signals.
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This article was originally posted on FX Empire
