Dick's Sporting Goods is trading just a few points below its all-time high, set in March last year. Profit growth has been steady this past year and last quarter it reversed from a decline in revenue a year earlier to a 19% top-line surge. Additionally, Dick's stock got an upgrade to its Relative Strength (RS) Rating on Wednesday, rising from 88 to 91. Topping it off, Dick's is No. 1 in the retail-leisure industry group.
Dick's Stock Ratings Confirm Leadership
Market research shows that the best-performing stocks tend to have an 80 or higher RS Rating in the early stages of their moves. Dick's stock just joined that elite group. Other ratings for the Pittsburgh area-based sporting goods chain confirm it's a leader in its market segment and overall. Dick's stock boasts a 92 Composite Rating, placing it in the top 8% of all companies for a group of the most important technical and fundamental metrics.
Its Earnings Per Share Rating also shines at 91, while its B- Accumulation/Distribution Rating on an A+ to E scale show mutual funds, ETFs and other institutional investors are fairly heavy buyers of Dick's stock. That's buttressed by the number of funds owning its shares. That number rose from 794 in the March-ended quarter to 957 in June, the highest number in at least a year.
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Dick's stock is trying to complete a consolidation with a 152.61 entry. See if the stock can clear the breakout price in heavy trading. It hit an all-time high at 152.61 on March 10, 2022. In the intervening 17 months its risen in stairstep fashion. Its stock dropped to an intraday low 63.45 on May 25 last year amid the bear market. But it recovered to close up 9.7% that day on its report of better-than-expected earnings. Dick's stock traded above 149, up for the day Wednesday afternoon.
Sales, Profits Rising
On May 23 this year the company reported that earnings grew 19% to $3.40 per share on a 5% rise in sales to $2.84 billion. The 19% increase in EPS was a reversal from declining earnings the prior three stanzas. The 5% increase in revenue came after it reversed from a 5% drop three quarter ago to post 8% and 7% growth prior to last quarter. The next quarterly results are expected on or around Aug. 22.
Dick's stock holds the No. 1 rank among its peers in the Retail-Leisure Products industry group. Custom stuffed animals maker Build-A-Bear Workshop is also among the group's highest rated stocks. So it Dick's sporting good srival Winmark, which buys, sells and trade sport gear.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength. IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
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