S&P 500   4,210.24
DOW   33,309.51
QQQ   325.93
The How And Why of Investing in Oil Stocks
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
The How and Why of Investing in Gold Stocks
The 2 Dow Stocks with Decade-Long Win Streaks on the Line
Trump says he took the Fifth in NY civil investigation
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
Closing prices for crude oil, gold and other commodities
Wall Street roars after inflation cools more than expected
Rhine River could fall below critical mark, risking industry
Investors Look to Capitalize on the Budding Green Revolution (Ad)
S&P 500   4,210.24
DOW   33,309.51
QQQ   325.93
The How And Why of Investing in Oil Stocks
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
The How and Why of Investing in Gold Stocks
The 2 Dow Stocks with Decade-Long Win Streaks on the Line
Trump says he took the Fifth in NY civil investigation
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
Closing prices for crude oil, gold and other commodities
Wall Street roars after inflation cools more than expected
Rhine River could fall below critical mark, risking industry
Investors Look to Capitalize on the Budding Green Revolution (Ad)
S&P 500   4,210.24
DOW   33,309.51
QQQ   325.93
The How And Why of Investing in Oil Stocks
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
The How and Why of Investing in Gold Stocks
The 2 Dow Stocks with Decade-Long Win Streaks on the Line
Trump says he took the Fifth in NY civil investigation
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
Closing prices for crude oil, gold and other commodities
Wall Street roars after inflation cools more than expected
Rhine River could fall below critical mark, risking industry
Investors Look to Capitalize on the Budding Green Revolution (Ad)
S&P 500   4,210.24
DOW   33,309.51
QQQ   325.93
The How And Why of Investing in Oil Stocks
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
The How and Why of Investing in Gold Stocks
The 2 Dow Stocks with Decade-Long Win Streaks on the Line
Trump says he took the Fifth in NY civil investigation
Forget Tesla, THIS Could be the Biggest EV Investment Play in 2022 (Ad)
Closing prices for crude oil, gold and other commodities
Wall Street roars after inflation cools more than expected
Rhine River could fall below critical mark, risking industry
Investors Look to Capitalize on the Budding Green Revolution (Ad)

It’s Time To Shop For Dick’s Sporting Goods Again 

It’s Time To Shop For Dick’s Sporting Goods Again 

Dick’s Sporting Goods Is At The Bottom

After correcting more than 30% over the past several quarters it looks like Dick’s Sporting Goods (NYSE: DKS) is at the bottom. The sell-off is more to do with expectations and systemwide hurdles than actual results and is aided by a high amount of short interest. At 22%, Dick’s Sporting Goods short-interest is not the highest we’ve ever seen but is substantially high and ample fuel for a short-squeeze. Add in the fact the Q4 results were much better than expected and aggressive dividend increases are still in play we see this stock moving higher over the course of the next quarter and then possibly setting new highs later in the year. 

The institutional activity in Dick’s Sporting Goods is worth noting as it poses a risk to investors. The institutions own more than 92% of the stock and they have been heavy sellers for the last two quarters. The net of institutional activity the last two quarters is worth more than 6.2% of the market cap with shares trading near $105 and a very big reason why prices are at their current lows. If this activity keeps up the stock could easily move lower or remain range-bound despite the strength of the business. However, if the Q4 results alter the institutional perspective on the stock the bottom is definitely in. Trading at only 6.4X its earnings and paying an S&P 500 beating 1.6% in yield we don’t see why the institutions would keep selling, we think the stock is attractively priced and pays an incredibly safe dividend. 

Dick’s Sporting Goods Beats And Raises, Shares Move Higher 

Dick’s Sporting Goods had another record-setting year in 2021 and topped it off with a strong quarter. The company reported $3.35 billion in net revenue for the 4th quarter which is good for a gain of 7% on top of last year’s 28.5% increase and beat the consensus by 120 basis points. The gains were driven by a 14% increase in store traffic offset by an 11% decline in eCommerce. eCommerce, notably, is up 57% in the two-year stack and penetration is up 200 basis points. 


Moving down, pricing and reduced promotional activity aided the margins and bottom line. The company experienced leverage at both the gross and operating levels to produce high-double-digit increases in both the GAAP and adjusted earnings. On the bottom line, the adjusted $3.64 is up from last year’s $2.43 and beat the Marketbeat.com consensus by $0.11 or 310 basis points. 

The company is guiding for flat to slightly negative revenue growth in fiscal 2022 but that is to be expected following the past two years of record-setting results. The COVID tailwinds are long gone and there are headwinds facing the economy so flat is good, especially considering the strength of the balance sheet and outlook for dividend growth. Regardless, the company is guiding earnings in the range of $11.70 to $13.10 which is also a YOY decline but well above the Marketbeat.com consensus of $11.26 so very positive in our eyes. 

The Technical Outlook: Dick’s Sporting Goods Moves Up From Support 

Shares of Dick’s Sporting Goods corrected more than 30% but have been bumping along the bottom for some time as well. The stock is now moving up from that bottom, at the $100 level, and may continue to move higher in the near term. If the market can put enough pressure on the shorts, however, the rally may gain the momentum it needs to move up and above the short-term moving average and approach the $120 level. Longer-term, we see this stock moving back up to retest the COVID-induced highs due to earnings power, dividends, and value to shareholders. 

It’s Time To Shop For Dick’s Sporting Goods Again 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
DICK'S Sporting Goods (DKS)
2.8247 of 5 stars
$101.97+3.9%1.91%7.88Hold$117.94
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in DICK'S Sporting Goods right now?

Before you consider DICK'S Sporting Goods, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DICK'S Sporting Goods wasn't on the list.

While DICK'S Sporting Goods currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastInvesting in What You Know Has Changed

What investors can learn from studying the past, as well as offering some ideas about asset classes with future potential.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.