DICK’S Sporting Goods Inc. DKS has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends.
DKS ended yesterday’s trading session at $239.57, above its 50 and 200-day SMAs of $225.87 and $212.11, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, reflects positive market sentiment and investor confidence in Five Below's financial stability and growth potential.
DKS Stock Trades Above 50 & 200-Day SMA
Image Source: Zacks Investment Research
Shares of the sporting goods retailer have gained 21.1% in the past three months compared with the Zacks Retail-Miscellaneous industry’s 7.5% growth. The company’s enhanced operational efficiency and growth initiatives have also helped it outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 13% and 5.5%, respectively, in the same period.
DKS Stock's Past Three Month Performance
Image Source: Zacks Investment Research
Factors Driving DKS’ Momentum
DICK’S Sporting is growing because it has a strong brand and digital innovation. The company focuses on three key areas to stay ahead. First, it makes shopping easy by combining its stores with online services like curbside pickup and fast delivery. Second, it offers unique and high-quality products, including exclusive items from top brands. Third, it builds strong customer relationships through loyalty programs, events and digital marketing.
The company is advancing its digital investment efforts, strengthening its connection with athletes beyond traditional shopping. In the last reported quarter, millions of unique users engaged with GameChanger, reflecting a significant rise from the prior year. The app had a substantial number of daily active users, offering unique and on-trend products. By leveraging GameChanger, DICK’S Sporting continues to enhance its leadership in sports.
The company’s strategic investments, including innovative concepts like House of Sport and DICK'S Field House, are redefining the sports retail experience. In the third quarter of fiscal 2024, a strong back-to-school season and continued market share gains drove excellent performance.
Management is committed to revolutionizing its DICK’S stores with a next-generation format and continues to enhance digital and store experiences to drive athlete engagement. The company has been seeing growth in omnichannel athletes. It also continues to invest in the digital capabilities. Further, the company is making significant investments to reposition its portfolio to deliver an elevated omnichannel athlete experience. These strategic investments are expected to significantly boost sales and profitability.
Optimistic FY2024 Outlook of DKS
With this momentum and confidence in its business, the company has again raised its fiscal 2024 outlook, now expecting net sales of $13.2-$13.3 billion, with comparable sales growth of 3.6-4.2%. This reflects improvements from fiscal 2023 sales of $12.98 billion and 2.5% comps growth. DICK’S Sporting also maintained its projected EBT margin at 11.2% at the mid-point for fiscal 2024, showing growth from 10.8% in the prior year. Adjusted EPS is forecasted between $13.65 and $13.95, compared with $12.91 in fiscal 2023.
Estimate Revisions Favor DKS Stock
Analysts have responded positively to DKS’s prospects reflected in upward revisions in the Zacks Consensus Estimate for EPS. In the past 30 days, analysts have increased their estimates for fiscal 2024 by a penny. The consensus estimate for earnings is pegged at $13.89 per share, reflecting a year over year growth of 7.6%.
The consensus estimate for earnings for fiscal 2025 has been raised by 2 cents to $14.78 per share, indicating a growth of 6.4% year over year. The Zacks Consensus Estimate for fiscal 2024 and 2025 sales is pegged at $13.3 billion and $13.9 billion, indicating year-over-year growth of 2.4% and 4.4%, respectively.
Final Thought on DKS Stock
DKS stock presents an appealing option for investors fueled by its strong brand and consistent market share gains and three strategic growth pillars. The company’s focus on digital innovation efforts and ambitious plans to revolutionize its stores with a next-generation format and continue to enhance digital and store experiences have increased profitability. With raised earnings expectations and a positive growth outlook, it presents an attractive opportunity for investors seeking long-term growth. It currently has a Zacks Rank #2 (Buy).
Don’t Miss These Solid Bets
We have highlighted three other top-ranked stocks in the broader sector, namely Deckers Outdoor DECK, Urban Outfitters Inc. URBN and Nordstrom, Inc. JWN.
Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an earnings surprise of 36.8% in the trailing four quarters, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ fiscal 2024 sales and earnings indicates growth of 15.3% and 20.6%, respectively, from the year-ago reported figures.
Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. It sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2025 earnings and sales indicates growth of 20.6% and 7.5%, respectively, from the fiscal 2024 reported levels. URBN delivered a trailing four-quarter average earnings surprise of 22.8%.
Nordstrom, a fashion retailer, provides apparel, shoes, beauty, accessories and home goods for women, men, young adults and children, currently flaunts a Zacks Rank of 1. JWN delivered an earnings surprise of 30.3% in the last reported quarter.
The Zacks Consensus Estimate for Nordstrom’s current financial-year sales indicates growth of 2.02% from the year-ago period’s reported figures.
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