Dick's Sporting Goods Inc. (DKS): Today's Featured Specialty Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Dick's Sporting Goods ( DKS) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Dick's Sporting Goods fell $1.73 (-3.3%) to $50.12 on heavy volume. Throughout the day, three million shares of Dick's Sporting Goods exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $49.56-$52.20 after having opened the day at $52.02 as compared to the previous trading day's close of $51.85. Other companies within the Specialty Retail industry that declined today were: Zale Corporation ( ZLC), down 3.8%, Office Depot ( ODP), down 3.5%, Barnes & Noble ( BKS), down 3.3%, and Sport Chalet ( SPCHA), down 2.5%.
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Dick's Sporting Goods, Inc. operates as a sporting goods retailer in the United States. Dick's Sporting Goods has a market cap of $5.01 billion and is part of the services sector. The company has a P/E ratio of 24.9, equal to the average specialty retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 40.6% year to date as of the close of trading on Friday. Currently there are 16 analysts that rate Dick's Sporting Goods a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Dick's Sporting Goods as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Trans World Entertainment ( TWMC), up 5.5%, Zagg ( ZAGG), up 5.2%, Bluefly ( BFLY), up 4.1%, and Birks & Mayors ( BMJ), up 3.9%, were all gainers within the specialty retail industry with Netflix ( NFLX) being today's featured specialty retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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