DICK'S Sporting Goods: Outshining Their Peers And More Room To Run

Summary

• DICK'S Sporting Goods is reporting positive sales growth and is not seeing evident signs of consumer stress.
• Higher traffic levels and sales volumes support this view. The higher volume also appears to be at the expense of their smaller-sized peers.
• An expanding footprint that includes a more immersive retail format is likely to result in further share gains.
• Despite trading at the top-end of their 52-week range, I view shares as undervalued due to recent outperformance, the positive future outlook, and their current trading multiple, which remains below their five-year average.

Miosotis Jade

DICK’S Sporting Goods (NYSE:DKS) is showing investors that necessities aren’t just limited to lower priced consumables. Spending on team-based sports is proving to be just as essential to some consumers.

Shares in the stock are trading near their all-time highs. And

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.