DICK's Sporting Attains 52-Week High - Analyst Blog

By Zacks Equity Research,

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Shares of DICK's Sporting Goods Inc. ( DKS ) reached a new 52-week high of $58.74 on Tuesday, Jan 7 and eventually closed trade at $58.58. The average volume of shares traded over the last 3 months was approximately 1,170K. Notably, this sporting goods retailer amassed a year-over-year return of 23.5%.

Moreover, DICK's Sporting currently trades at a forward P/E of 22.1x, a 10.2% discount to the industry average of 24.6x. Additionally, the company's long-term estimated earnings per share (EPS) growth rate is 15.3%, which is above the industry average of 14.7%.

DICK's Sporting has risen to call and repositioned itself in a challenging macroeconomic backdrop via measures such as a stringent focus on new product introductions, effective cost management and new store openings. We believe expanding direct-to-consumer operations, omni-channel strategies, effective inventory management and optimum capital allocation augur well for DICK's Sporting to sustain its growth momentum.

This was well reflected in DICK's Sporting's better-than-expected third-quarter fiscal 2013 results. The company's earnings of 40 cents per share for the quarter came ahead of its own guidance range of 37-39 cents and beat the Zacks Consensus Estimate by a penny. Net sales rose 6.7% year over year to $1,400.6 million and came ahead of the Zacks Consensus Estimate.

Buoyed by better-than-expected third-quarter results, DICK'S Sporting raised the lower-end of its earnings guidance for fiscal 2013. Management now anticipates adjusted earnings between $2.62 and $2.65 per share, against the earlier projection of $2.60-$2.65. Currently, the Zacks Consensus Estimate is pegged at $2.65 per share, which coincides with the higher-end of the company's guidance range.

Moreover, the earnings surprise history of the company raises hopes about its future upbeat performance. In the last 21 quarters, this Zacks Rank #3 (Hold) company has surpassed the estimate 18 times with an average beat of 16.1%.

Apart from DICK's Sporting, companies such as Bank of America Corporation ( BAC ), Gannett Co., Inc. ( GCI ) and United Rentals, Inc. ( URI ) achieved new 52-week highs of $16.79, $30.05 and $78.79, respectively, on Jan 7.

BANK OF AMER CP (BAC): Free Stock Analysis Report

DICKS SPRTG GDS (DKS): Free Stock Analysis Report

GANNETT INC (GCI): Free Stock Analysis Report

UTD RENTALS INC (URI): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BAC , DKS , EPS , GCI , URI

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