NEW YORK (TheStreet) --Shares of Dick's Sporting Goods (DKS) were climbing on above average trading volume in mid-afternoon trading on Wednesday after Wedbush Securities initiated coverage of the stock today.
The firm placed a "buy" rating with a $67 price target on the stock.
"When you look at it from a valuation perspective it's great," Najarian Family and Advisors Office co-founder Pete Najarian said during today's "Fast Money Halftime Report" on CNBC.
The problem with Dick's in the past was that everybody kept focusing on the company's Golf Galaxy numbers, which had been terrible, he explained.
That, however, "is such a small factor when you consider what Dick's Sporting Goods really offers," Najarian added.
"They give you a yield, still trading underneath a 20 on the multiple, and they have all the advantages of being agnostic [to manufacturers], they're just selling," he stated.
Najarian believes Dick's Sporting Goods to have more upside potential than Foot Locker (FL) and Finish Line (FINL).
Separately, TheStreet Ratings objectively rated Dick's stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: DKS