#1 - Dick’s Sporting Goods (NYSE:DKS)
Many analysts are forecasting an “earnings recession” next year. Dick’s Sporting Goods (NYSE: DKS) is hoping to be an outlier. If they are, it will break the trend of where earnings have been going in fiscal year 2023.
Analysts forecast quarterly earnings per share of about $2.90 for Dick’s fourth quarter. That would put earnings per share for the company’s full fiscal year 2023 at approximately $12 a share. That’s about a 20% drop from the EPS of over $15 the company achieved in the fiscal year 2022.
However, Dick’s is forecasting full-year 2024 EPS at $13.25. Nobody reasonably expects Dick’s to deliver the same earnings as in its fiscal year 2022. That was an outlier based on a reopening of the economy – and particularly school sports.
But it does show the strength of the company’s margins, which are holding up in the face of sticky inflation. Since earnings are what generally fuel stock price performance, it’s likely to mean that investors can be optimistic about the consensus price target of analysts tracked by MarketBeat, which gives DKS stock a 9.56% upside from its January 5, 2023 price.
Dick’s pays a dividend that currently yields 1.57%. The company has been increasing its dividend in the last 8 years. The dividend has an annual growth rate of approximately 17%.
About DICK'S Sporting Goods
Dick's Sporting Goods, Inc engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.
- Current Price
- $238.12
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $248.09 (4.2% Upside)
