Weak On High Volume: Dick's Sporting Goods (DKS)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Dick's Sporting Goods as such a stock due to the following factors:
- DKS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $112.8 million.
- DKS has traded 251,852 shares today.
- DKS is trading at 3.26 times the normal volume for the stock at this time of day.
- DKS is trading at a new low 3.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on DKS:
Dick's Sporting Goods, Inc. operates as a sporting goods retailer primarily in the eastern United States. The company provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear products and accessories. The stock currently has a dividend yield of 1.2%. DKS has a PE ratio of 15. Currently there are 9 analysts that rate Dick's Sporting Goods a buy, no analysts rate it a sell, and 11 rate it a hold.
The average volume for Dick's Sporting Goods has been 1.8 million shares per day over the past 30 days. Dick's Sporting Goods has a market cap of $4.1 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.93 and a short float of 4.9% with 1.73 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Friday.
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Analysis:
rates Dick's Sporting Goods as a
. 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 ratings report include:
- 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 Dick's Sporting Goods Ratings Report.
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