DICK'S Sporting Goods: Bet On The Best

(7min)

Summary

  • Despite a recent 7% dip, I maintain a buy rating on DICK'S Sporting Goods, Inc. due to attractive valuation and ongoing growth.
  • Strong Q2 earnings, with net income rising 48% to $362 million, and impressive comparable sales growth of 4.5%, justify buying the dip.
  • The balance sheet remains healthy, with more cash than debt, despite increased inventory, which may concern some investors.
  • With raised guidance and strong fundamentals, I see current DICK'S Sporting Goods, Inc. stock weakness as a buying opportunity, anticipating a good holiday quarter and future dividend increases.
  • This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing. Learn More »

A Roulette Wheel With Ball

Jonathan Knowles

As many of our followers know, we have traded DICK'S Sporting Goods, Inc. (NYSE:DKS) several times in the last few years. This stock remains one of the favorites, particularly among options traders, over at our Investing Group. Earlier in

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of DKS either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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