Why Dicks Sporting Goods (DKS) Stock Was Downgraded By Several Analysts Today

NEW YORK (TheStreet) -- Shares of Dicks Sporting Goods Inc. (DKS) were downgraded today and cut to "neutral" at Goldman Sachs  (GS), Credit Suisse  (CS), JPMorgan  (JPM), and Piper Jaffray  (PJC), and raised at BMO Capital Markets.

The company reported adjusted earnings per share of 50 cents yesterday, compared to the Thomson Reuters consensus estimate of 52 cents a share. Revenue totaled $1.44 billion, which was short of analysts' expectations of $1.46 billion.

Dick's also expects full-year adjusted earnings per share of $2.70 to $2.85, compared to the consensus estimate of $3.08. The company expects full-year comparable-store sales to be up 1% to 3%.

In its note, JPMorgan reduced Dicks to 'neutral,' saying "while we believe the stock is oversold at its current price, we are downgrading...as the investment thesis has changed and tactically the poor back half set up is now accelerated."

BMO Capital increased its rating to "market perform" from "underperform." 

The stock closed down 17.98% to $43.60 yesterday, and is down 0.87% to $43.22 in pre-market trade.

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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 some important positives, 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 revenue growth, growth in earnings per share, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

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