Stock Analysis

Is Now The Time To Look At Buying DICK'S Sporting Goods, Inc. (NYSE:DKS)?

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NYSE:DKS
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Let's talk about the popular DICK'S Sporting Goods, Inc. (NYSE:DKS). The company's shares saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at DICK'S Sporting Goods’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for DICK'S Sporting Goods

Is DICK'S Sporting Goods still cheap?

Good news, investors! DICK'S Sporting Goods is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $161.59, but it is currently trading at US$124 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, DICK'S Sporting Goods’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will DICK'S Sporting Goods generate?

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NYSE:DKS Earnings and Revenue Growth October 22nd 2021

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of DICK'S Sporting Goods, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What this means for you:

Are you a shareholder? Although DKS is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to DKS, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on DKS for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've found that DICK'S Sporting Goods has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

If you are no longer interested in DICK'S Sporting Goods, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Valuation is complex, but we're helping make it simple.

Find out whether DICK'S Sporting Goods is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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