Here's Why Dick's Sporting Goods (DKS) Stock is Declining Today
NEW YORK (TheStreet) -- Dick's Sporting Goods (DKS) - Get Report shares are retreating 0.74% to $44.55 on Wednesday after analysts at Barclays started coverage of the company with an "equal weight" rating and a $50 price target.
Analysts made some bearish comments saying, "The company's underlying performance is not accelerating."
Even though industry pressures at the company are diminishing, analysts are staying on the sidelines for now until they see more positives.
However, the firm is hopeful on Dick's Sporting's growth initiatives.
Based in Coraopolis, PA, Dick's Sporting Goods operates as a sporting goods retailer primarily in the eastern U.S.
Separately, TheStreet Ratings team rates DICKS SPORTING GOODS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate DICKS SPORTING GOODS INC (DKS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DICKS SPORTING GOODS INC has improved earnings per share by 35.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DICKS SPORTING GOODS INC increased its bottom line by earning $2.85 versus $2.70 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $2.85).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 30.8% when compared to the same quarter one year prior, rising from $69.47 million to $90.84 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 7.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $167.53 million or 21.14% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.19%.
- You can view the full analysis from the report here: DKS