Stock Analysis

Is There Now An Opportunity In DICK'S Sporting Goods, Inc. (NYSE:DKS)?

NYSE:DKS
Source: Shutterstock

Today we're going to take a look at the well-established DICK'S Sporting Goods, Inc. (NYSE:DKS). The company's stock saw significant share price movement during recent months on the NYSE, rising to highs of US$150 and falling to the lows of US$122. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether DICK'S Sporting Goods' current trading price of US$134 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at DICK'S Sporting Goods’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for DICK'S Sporting Goods

What Is DICK'S Sporting Goods Worth?

Good news, investors! DICK'S Sporting Goods is still a bargain right now. According to my valuation, the intrinsic value for the stock is $170.22, but it is currently trading at US$134 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.

Can we expect growth from DICK'S Sporting Goods?

earnings-and-revenue-growth
NYSE:DKS Earnings and Revenue Growth June 7th 2023

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. DICK'S Sporting Goods' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since DKS is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on DKS for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DKS. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Be aware that DICK'S Sporting Goods is showing 3 warning signs in our investment analysis and 1 of those is a bit unpleasant...

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.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.