Dick’s Sporting Goods (DKS) stock is catching investors’ attention, with the shares up about 10% at last check.
The rally comes after the retailer reported earnings and more than doubled its quarterly dividend to $1 a share. It now yields about 3%, making it more competitive with that pesky 10-year Treasury yield.
Don't Miss: Has Alphabet Stock Bottomed or Are More Losses on the Way?
It also comes alongside a top- and bottom-line earnings beat of expectations, while guidance came in quite strong.
Management expects full-year earnings in a range of $12.90 to $13.80 a share vs. consensus expectations just below $12 a share.
Just a few days ago, Dick’s Sporting Goods stock made Morningstar’s list of undervalued stocks, which in hindsight was a great call.
Trading Dick’s Sporting Goods Stock on Earnings
Chart courtesy of TrendSpider.com
The reaction to Dick’s Sporting Goods stock is not what we’ve seen from most big-name retailers this year.
Stocks like Costco (COST), Target (TGT), Home Depot (HD) and others have struggled after the companies reported earnings.
But since Dick's bottomed in mid-2022, the shares have been marching higher. Now, all-time highs are within view.
Don't Miss: Can Apple Stock Break Out as It Nears Key Resistance Area?
With Tuesday’s rally, Dick’s Sporting Goods stock traded up toward $146, which is the 161.8% extension from the recent pullback range. That’s a perfect spot for bullish traders to lighten up on their positions.
If the shares can continue higher, the all-time high at $147.39 is in play. Above $150 and the 261.8% extension of the recent pullback range is in play up near $157.50.
On the downside, the bulls would like to see the shares stay above the February high of $138.43, as well as the short-term moving averages like the 10-day and the 21-day.
So far, Dick's shares are doing an excellent job blocking out the noise and bucking the selling pressure in the overall market. If they keep doing that, traders may have a new stock to ride in what may be a turbulent market.
As always, mind your risk tolerance and realize the trend can change at any time.
