VSTO - After Doubling A Downgrade For DICK'S Sporting Goods Is Prudent
2024-05-24 09:25:30 ET
Summary
- DICK'S Sporting Goods shares have skyrocketed 70.9% since the stock's drop in August 2023, outperforming the S&P 500.
- The company's revenue has seen consistent, modest growth, driven by growth in store count and price increases.
- While the company's financial performance has been mixed, management has positive expectations for 2024, with revenue expected to increase and earnings per share projected to be between $12.85 and $13.25.
- Shares aren't expensive, but they aren't cheap either, warranting a downgrade for now.
Usually, when I rate a company a ‘buy’, it is a testament to my belief that shares should see upside that exceeds what the broader market should experience. However, even I am sometimes surprised by how strong this upside can be. As an example, we need only look at the famous sporting goods retailer known as DICK'S Sporting Goods ( DKS ). The most recent article that I published about the company came out in August of 2023. In that article, I was covering how the stock had plummeted after missing revenue and earnings guidance for the second quarter of the 2023 fiscal year. That drop of 24% was awfully painful, but I maintained that the stock was cheap and deserved attractive upside....
After Doubling, A Downgrade For DICK'S Sporting Goods Is Prudent