Dick's Sporting Goods ( NYSE: DKS ) tacked on another 0.70% in premarket trading on Wednesday as analysts continue to weigh in on what has been called a solid quarter for the retailer.
Evercore ISI said it is becoming clear to that the share gains for Dick's in apparel/footwear/team sports is more than offsetting the pandemic-category normalization, and the sales and margin re-rate will be much stickier than for other pandemic winners.
Meanwhile, Oppenheimer said it is impressed with the ability of Dick's Sporting Goods ( DKS ) to navigate through the post-COVID-19 backdrop. Key takeaways identified by analyst Brian Nagel from the DKS earnings report are that underlying demand at DKS remains solid, management is optimistic that the inventory vs. markdown situation is under control, and data suggests an initial healthy start to the back-to-school season for the retailer.
While the DKS quarter was solid, Oppenheimer kept a Hold rating on the stock due to challenging comparisons just ahead that could drag on the growth numbers. The firm continues to recommend Outperform-rated Academy Sports and Outdoors ( ASO ) as the preferred play in sporting goods retail.
Behind the scenes, the Seeking Alpha Quant Rating on ASO is flashing Buy vs. the Hold rating for Dick's. ASO ranks in the top 10% of all consumer discretionary stocks by its quant rating.
Compare valuation, profitability, and growth metrics on DKS and ASO.
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Sporting goods stocks: Dick's earnings impress but Academy Sports could be the sector sleeper