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DKS

Dick’s Sporting Goods to release Q4 numbers

What's Happening

Athletic goods and apparel retailer Dick's Sporting Goods ( DKS ) is expected to report fourth-quarter numbers before the market open March 13. Analysts forecast earnings of $1.20 per share, versus $1.32 during the same period last year. DKS is up 6.8% on the year.

Technical Analysis

DKS was recently trading at $31.50, down $20.81 from its 12-month high and $7.62 above its 12-month low. Technical indicators for DKS are neutral with a sideways trend. The stock has recent support above $30.00 and recent resistance below $33.50. Of the 23 analysts who cover the stock, nine rate it a "strong buy", 13 rate it a "hold", and one rates it a "strong sell". DKS gets a score of 31 from InvestorsObserver's Stock Score Report.

Analyst's Thoughts

Last year was a tough one for DKS, but the stock closed out the year in an upward trend, and has managed to rise 11.06% so far in 2018. Shares have been stuck in a sideways pattern for the last two months, and the company will need a positive quarterly report for the stock to break out higher. The company has struggled to grow earnings, with profits expected to fall by 3.8% during the current year, and by 7.7% next year. However, looking forward down the line, analysts are expecting per annum earnings growth of 8.2% over the next five years, which would be enough to keep some strength under the stock and a strong quarterly report would help it continue erasing some of last year's losses. The market expects a positive earnings surprise, with a whisper number of $1.23 for the quarter, versus the consensus $1.20.

Stock Only Trade

Bullish Trade

If you want a bullish hedged trade on the stock, consider an April 23/26 bull-put credit spread for a 20-cent credit. That's a potential 7.1% return (62.0% annualized*) and the stock would have to fall 16.8% to cause a problem.

Bearish Trade

If you want to take a bearish stance on the stock at this time, consider an April 37/42 bear-call credit spread for a $0.40 credit. That's a potential 8.7% return (75.6% annualized*) and the stock would have to rise 18.7% to cause a problem.

Covered Call Trade

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

Originally published on InvestorsObserver.com


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

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