Dick's Sporting Goods (DKS) issued its fourth-quarter report today. The company was rocking this afternoon: with a little more than two hours to go before the close of the session, the stock was up 6% to $39.93. Earlier during the intraday session, a new 52-week high of $40.26 was achieved. It's good to get over that psychological round-number level, right?

The volume of shares traded so far is already in the spectacular range. The 52-week low for the stock is $24.02, so the current price is more than a comfortable distance away from that point. The one-year chart is attractive even if it doesn't plot a straight-up line.

Continue reading Dick's Sporting Goods Hits New 52-Week High

Dick's Sporting Goods Hits New 52-Week High originally appeared on BloggingStocks on Tue, 08 Mar 2011 17:00:00 EST. Please see our terms for use of feeds.

So, the unemployment rate sank below 9% in February, but investors didn't seem to be impressed by that. The Dow, Nasdaq and S&P 500 all fell on Friday over concerns about how the ongoing unrest in the Middle East might affect energy prices, and thus the economic recovery.

Will this coming week's economic calendar offer anything likely to bring excitement to the markets? Here's what's on tap:

• Monday: Consumer credit numbers for January
• Tuesday: Weekly chain store sales, TIPP Economic Optimism Index

Continue reading Week in Preview: Retail Sales, Consumer Credit and Earnings

Week in Preview: Retail Sales, Consumer Credit and Earnings originally appeared on BloggingStocks on Sun, 06 Mar 2011 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Dick's Sporting Goods Soars after Strong Forecast

Dick's Sporting Goods Soars after Strong Forecast originally appeared on BloggingStocks on Tue, 16 Nov 2010 14:30:00 EST. Please see our terms for use of feeds.

When you need to buy North Face and Columbia Sportswear, where do you go? One hot retailer that sells both is Dick's Sporting Goods (DKS). In November, the company reported better-than-expected third-quarter earnings on rising same-store sales.

Dick's attributed the rise in same-store sales to strong performance of both the North Face and Columbia Sportswear brands. The company also said the increased sales for these brands were likely due to fears of a harsh winter.

Continue reading Cold Weather Stock #5: Dick's Sporting Goods (DKS)

Cold Weather Stock #5: Dick's Sporting Goods (DKS) originally appeared on BloggingStocks on Sun, 24 Jan 2010 13:00:00 EST. Please see our terms for use of feeds.

If you live practically anywhere east of the San Andreas Fault, you know about the deep freeze biting the nation. Temperatures in many areas of the country have been way below normal this winter, especially in the Midwest and East Coast, and unfortunately, many meteorologists think the 2010 cold front will bring plenty of chilly nights before it makes its welcome departure.

According to the 2010 Farmers' Almanac, this winter will likely see many more days with below-normal average temperatures. Not just in the Midwest and East Coast, but for about three-quarters of the nation. The fallout from these cold temps is a constriction of outdoor activity, more time indoors, increased use of heaters, and when you have to go outside, the need to bundle up.

Continue reading Hot Profits from Five Cold-Weather Stocks

Hot Profits from Five Cold-Weather Stocks originally appeared on BloggingStocks on Sat, 23 Jan 2010 09:00:00 EST. Please see our terms for use of feeds.

Dick's Sporting Goods (DKS) was shot out of a proverbial cannon Thursday morning, gaining more than 5% in the first minute of trading.

Ahead of the opening bell, Merill Lynch/Bank of America upgraded the stock to buy from neutral and lifted its price target by five bucks to $28.

The bank noted that fourth-quarter sales could be better than expected, as recent cold weather trends might send people into the stores looking to supplement their cold-weather wear. (Side note: negative 16 wind chill in Chicago today, and yes, I still love living here).

Continue reading Dick's Sporting Goods scores an upgrade

Dick's Sporting Goods scores an upgrade originally appeared on BloggingStocks on Thu, 10 Dec 2009 11:20:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AnnTaylor Stores Corp. (NYSE: ANN) reported a smaller-than-expected Q1 loss as sales slumped.
• Barnes & Noble Inc. (NYSE: BKS) smaller-than-expected Q1 net loss sent shares higher.
• Children's Place Retail Stores Inc. (NASDAQ: PLCE) solid Q1 results were in line with expectations.
• Dick's Sporting Goods Inc. (NYSE: DKS) posted higher-than-expected Q1 results but same-store sales fell.
• Gap Inc. (NYSE: GPS) lower Q1 earnings beat expectations and lower revenue was in line.

Continue reading Earnings highlights: HP, Gap, Saks, Hormel, Barnes & Noble and more

Earnings highlights: HP, Gap, Saks, Hormel, Barnes & Noble and more originally appeared on BloggingStocks on Sat, 23 May 2009 14:40:00 EST. Please see our terms for use of feeds.

I have waxed poetically about how much I like golf in the past -- some may even say that I am obsessed (like Tiger Woods' lawyers -- kidding). With the great city of Cincinnati finally wrapping up winter and seeing that bright glowing orb known as the sun, I can't help but think about getting out there on the links and destroying some landscaping.

One sure way to tell that golf season is right around the corner is when your local Dick's Sporting Goods (NYSE: DKS) starts touting itself as the golf headquarters. Well, guess what happened over the weekend? That's right, I saw my first golf commercial. My question is, will the start of golf season be enough to help the sports retailer put the recent downturn behind itself and push forward?

There can be no doubt that the recent downturn in the economy has beaten down and battered the retail sector, and DKS is no exception. On a weekly basis, the stock has descended steadily since 2007 -- wilting under pressure from its 10-, 20-, and 50-week moving averages.

Continue reading JockStocks: Is Dick's Sporting Goods about to tee off and drive higher?

JockStocks: Is Dick's Sporting Goods about to tee off and drive higher? originally appeared on BloggingStocks on Fri, 03 Apr 2009 12:50:00 EST. Please see our terms for use of feeds.

Dick's Sporting Goods (NYSE: DKS) competed on Tuesday in a contest that no company really wants to play: the Expectations Game. Things turned out pretty well for the famous seller of sports stuff (being that I'm no athlete, I can't say I've purchased anything from the place). For the fourth quarter, Dick's posted adjusted income of 55 cents per diluted share. Analysts surveyed by Reuters believed that the chain might do 53 cents per share.

Very cool. In fact, Dick's stock closed yesterday at $12.84. The shares gained over 17% on excellent volume. So, one might expect that the earnings were great and that the stock is a buy. Not so fast.

Continue reading Dick's Sporting Goods beats the estimates game

Dick's Sporting Goods beats the estimates game originally appeared on BloggingStocks on Wed, 11 Mar 2009 09:00:00 EST. Please see our terms for use of feeds.

After testifying before a Senate committee about AIG (NYSE: AIG) last week, the Fed's Ben Bernanke participates in a Council of Foreign Relations event Monday evening.

Economic data due to be released this week include wholesale trade and job vacancies for January on Tuesday morning, the U.S. Treasury budget for February on Wednesday, retail sales for February and business inventories for January on Thursday morning, and the U.S. trade balance for January on Friday morning.

Continue reading The week in preview: Bernanke, earnings winners, and Raymond James conference

The week in preview: Bernanke, earnings winners, and Raymond James conference originally appeared on BloggingStocks on Sun, 08 Mar 2009 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Dicks Sporting Goods (DKS) soars on lifted guidance

Dicks Sporting Goods (DKS) soars on lifted guidance originally appeared on BloggingStocks on Fri, 06 Feb 2009 14:00:00 EST. Please see our terms for use of feeds.

• O'Reilly Automotive (NASDAQ: ORLY) is an auto parts retailer that is facing weak demand as a result of soaring crude oil prices. However, analysts believe the company's strategy to buy CSK Auto will bring a lot of national success. ORLY is expected to show earnings of $1.76 per share this year and $2.02 next year.
• Stanley Works (NYSE: SWK), headquartered in New Britain, Conn., has the advantage of being one of only two companies offering a complete line of hand tools for consumers. The company focuses its performance on both its industrial tool division and a security business. Analysts forecast a profit of $4.18 this year, and $4.63 a share for next year.

Continue reading Kiplinger suggests five stocks for Father's Day

Kiplinger suggests five stocks for Father's Day originally appeared on BloggingStocks on Wed, 11 Jun 2008 16:44:00 EST. Please see our terms for use of feeds.

Financial Select Sector SPDR (AMEX: XLF) is recently down $1.05 to $29.46. XLF call option volume of 16,078 contracts compares to put volume of 59,665 contracts. XLF December option implied volatility of 40 is above its 26-week average is 25 according to Track Data, suggesting hedging for continued downside risk.

Dicks Sporting Goods Inc. (NYSE: DKS), an operator of 314 sporting goods stores, is expected to report EPS of five cents on November 20 according to Thompson First Call. Nollenberger Capital Partners says, "we would use this pullback as a unique opportunity to buy the stock at a compelling valuation." DKS December option implied volatility of 64 is above its 26-week average of 34 according to Track Data, suggesting larger price action.

Option update: Financial Select Sector put volume suggests downside risk originally appeared on BloggingStocks on Mon, 19 Nov 2007 13:47:00 EST. Please see our terms for use of feeds.

Following today's close Dick's Sporting Goods (DKS) announced an acquisition of Golf Galaxy (GGXY). DKS is going to pay about $225 million for the company ($18.82/share) which is a premium of 20% over Monday's closing price. The transaction will be financed using an existing credit facility according to Marketwatch.

Golf Galaxy (most recent 10Q) operates 61 golf stores in 24 states, primarily located in the northern and Midwestern United States, and an e-commerce/catalog business. Golf Galaxy recently completed an acquisition of The GolfWorks - a company focused on selling golf club components, clubmaking tools, and technical information on golf clubs. The company came public on August 3, 2005 with an offering price of $14 per share.

According to Capital IQ Golf Galaxy did $250 million in revenues, $13 million in EBIT, and $7.7 million in net income over the last twelve months (LTM). Therefore DKS paid about .9x sales, 17x EBIT, and 29x net income. These figures are above peer valuations. For example, Golfsmith International (GOLF) trades for .5x sales and 13x EV/EBIT, however the firm's net income is negative. Big Five Sporting Goods (BGFV) fetches .7x sales, 11.4x EV/EBIT and 18.6x earnings.

While it seems DKS didn't purchase GGXY at a discount to the peers, the valuation makes more sense when looking at the valuations of retailers experiencing similar rates of growth. The average analyst estimate of long term growth for GGXY is 26% and analysts believe the company will grow revenues to roughly $365 million in 2008. The average estimate of long term growth for Hibbett Sporting Goods (HIBB) is only 19%. However, HIBB currently fetches 2x sales, 14.5x EV/EBIT and 29x earnings.

Golf is an extremely lucrative segment of sporting goods due to the sport's rapidly growing popularity and typically affluent user-base. Dick's Sporting Good's acquisition of Golf Galaxy will likely help the company gain traction in this competitive sub-sector of the sporting goods market in a relatively cost-effective manner.

Dicks Sporting Goods goes golfing originally appeared on BloggingStocks on Mon, 13 Nov 2006 17:50:00 EST. Please see our terms for use of feeds.