Analysts Keep ‘Hold’ Ratings for Dick’s Sporting Goods

Rating synopsis

Ahead of Dick’s Sporting Goods’ (DKS) upcoming fiscal first-quarter results on May 30, the majority of analysts have retained their “hold” ratings. Of the 30 analysts covering the stock, 63% have recommended a “hold,” 27% have recommended a “buy,” and 10% have recommended a “sell.”

Analysts Keep ‘Hold’ Ratings for Dick’s Sporting Goods

There have been no price revision changes in the last 30 days. Currently, analysts’ 12-month average target price for the company is $35.29, which reflects a 13.8% upside based on its stock price on May 18.

Dick’s Sporting Goods is investing in its digital and omnichannel capabilities and is leveraging stores to better meet customer demands. These factors are likely to improve its long-term performance. However, it’s also witnessing escalating expenses due to its ongoing investments in e-commerce and omnichannel capabilities. Shipping costs are also ballooning as its digital business gains momentum. Rising costs are likely to prove a drag on both its margins and bottom-line performance.

For the first quarter, analysts expect Dick’s Sporting Goods to report a 3.1% growth in sales, but adjusted EPS is expected to fall 16.7% to $0.45. It’s expected to report its first-quarter results on May 30.

Ratings for peers

Of the 22 analysts covering Foot Locker (FL), 32% have recommended a “hold,” and 59% have recommended a “buy.” Analysts’ target price for Foot Locker is $51.95, implying a 19.6% upside based on its stock price on May 18.

All the analysts covering Big 5 Sporting Goods (BGFV) stock have recommended a “hold.” Their mean target price is $7.75, implying a 1.9% downside based on its May 18 price.

Of the 13 analysts covering Hibbett Sports (HIBB), 54% have recommended a “hold,” and 31% have recommended a “buy.” Analysts’ target price for the stock is $27.04, implying a 2.9% downside based on its May 18 price.