DKS - DICK'S Sporting Goods: Don't Be Aggressive Here (Rating Downgrade)
2024-05-30 10:28:12 ET
Summary
- DICK'S Sporting Goods has boosted financial metrics above pre-Covid levels and has a structurally different business model.
- The retailer has more than doubled its EBT margin and is forecasted to have steady sales growth going forward.
- The stock now trades at 17x FY24 EPS targets and the actual growth rates don't warrant paying higher stock prices.
After another strong quarter, DICK'S Sporting Goods ( DKS ) remains one of the best operating retailers around. The sporting goods retailer has actually boosted financial metrics far above pre-Covid levels, but the stock has more than matched the move. My investment thesis is shifting to Neutral on the stock after the massive rally above $225....
DICK'S Sporting Goods: Don't Be Aggressive Here (Rating Downgrade)