Dicks Sporting Goods: Why Analysts Have Recommended ‘Hold’

Rating summary

As of April 13, 2018, most analysts covering Dick’s Sporting Goods (DKS) stock had recommended “hold.” Of 30 analysts, 63.0% recommended “hold,” 27.0% recommended “buy,” and 10.0% recommended “sell.”

Dicks Sporting Goods: Why Analysts Have Recommended ‘Hold’

Currently, analysts’ 12-month average target price for the company is $36.24, which reflects a ~10.3% upside based on its stock price on April 13, 2018. Dick’s is a prominent sporting goods retailer. However, the fast-evolving retail landscape, e-commerce expansion, and price wars have impacted retailers’ profit margins. Like other brick-and-mortar retailers, the company is investing in its digital channel and revamping stores to better meet customer demand. These moves seem to be in the right direction, based on its stock price movement. This year, Dick’s Sporting Goods had risen 14.3% as of April 13, 2018.

Where do peers stand?

Of the 21 analysts covering Foot Locker (FL), 33% have recommended “hold” and 57% have recommended “buy.” Analysts’ target price for Foot Locker is $51.53, implying a 14.0% upside based on its stock price on April 13, 2018.

All analysts covering Big 5 Sporting Goods (BGFV) have recommended “hold.” Big 5 Sporting Goods’ mean target price is $5.75, implying a 26.3% downside based on its April 13 stock price.

Of the analysts covering Hibbett Sports (HIBB) 54% have recommended “hold” and 31% have recommended “buy.” Analysts’ target price for the stock is $26.54, implying a 0.2% downside based on its April 13 stock price.