Williams Trading analysts reaffirmed their Buy rating and a $235 price target on Dick's Sporting Goods (NYSE:DKS) ahead of the company’s Q1/24 earnings release

Williams Trading Bullish on Dick's Sporting Goods Ahead of Q1 Earnings


blog post cover photo

Image credit: FMP

Williams Trading analysts reaffirmed their Buy rating and a $235 price target on Dick's Sporting Goods (NYSE:DKS) ahead of the company’s Q1/24 earnings release on Wednesday, May 29th. Despite expected short-term challenges, the analysts advised buying the stock. They noted that consensus estimates do not fully account for the following factors: first, the gross margin pressures from elevated "shrink rates" will begin to ease in Q2/24 as year-over-year comparisons become more favorable; second, there are SG&A pressures due to significant marketing campaigns for House of Sport store openings.

As a result, the analysts adjusted their Q1/24 EPS estimate from $3.03 to $2.85 to better reflect these margin and expense pressures. The analysts remain confident that Dick's Sporting Goods is successfully capturing market share from department stores in active apparel, particularly among women, and from some athletic specialty retailers, thanks to improved merchandise assortments and better digital and store execution. While the digital experience continues to outperform the in-store experience, the stores are showing progress.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep