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When Should You Buy DICK'S Sporting Goods, Inc. (NYSE:DKS)?

Simply Wall St · 07/26 13:26

DICK'S Sporting Goods, Inc. (NYSE:DKS) led the NYSE gainers with a relatively large price hike in the past couple of weeks. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at DICK'S Sporting Goods’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is DICK'S Sporting Goods Worth?

According to our valuation model, the stock is currently overvalued by about 33%, trading at US$217 compared to our intrinsic value of $163.56. This means that the opportunity to buy DICK'S Sporting Goods at a good price has disappeared! But, is there another opportunity to buy low in the future? Since DICK'S Sporting Goods’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

See our latest analysis for DICK'S Sporting Goods

What kind of growth will DICK'S Sporting Goods generate?

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NYSE:DKS Earnings and Revenue Growth July 26th 2025

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. DICK'S Sporting Goods' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in DKS’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe DKS should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on DKS for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for DKS, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Every company has risks, and we've spotted 3 warning signs for DICK'S Sporting Goods (of which 1 is potentially serious!) you should know about.

If you are no longer interested in DICK'S Sporting Goods, you can use our free platform to see our list of over 50 other stocks with a high growth potential.