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


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 The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BAC , DKS , EPS , GCI , URI



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