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.
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.
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
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.
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