Dick's Sporting Goods (DKS) Splits - Wait a week to buy
Dick's Sporting Goods (NYSE:DKS) shares split 2:1 this morning and now that shares are in the $32 range vs. $70 we're interested. Tack on a downgrade last week by Robert W. Baird & Co saying the recent run-up in the stock price and warm weather that may hurt Q3 results could push shares down even further.
Analyst J. David Cumberland said shares of the sporting goods retailer have risen over 22 percent since the company's strong second-quarter report. He downgraded the stock to "Neutral" from "Outperform."
In August, Dick's said second-quarter earnings rose 87% on higher sales from both existing and new stores.
(In millions of USD)
Cumberland warned, however, that mild weather conditions hurt recent sales of cold weather merchandise for many retailers. Cumberland said temperatures have been six degrees above average in Dick's markets over the past four weeks, which may hurt third-quarter results.
In the long-term, Cumberland said the company will continue reporting strong earnings and sales growth because of its market leadership and strong execution. Cumberland said Dick's has 7 percent market share in the $52 billion sporting goods retail market.
Bring on the hate, we welcome that, the more ammo to push shares down even further, if we see below $30, the Masters recommend jumping in.
Article by Ted Gottsegen
Contributor at TheStockMasters.com
Disclaimer: The Author does not hold any positions or shares in the securities mentioned in this publication nor does he stuff his shorts.
Our Original newsletter that has enlightened our subscribers for over a year. It contains What to Buy, What to Sell, and Market Commentary. We have a 17.5% return since October 2006 and the average wait for a return is only 3.61 months and we have the track record to prove it (click here to view Master Picks track record). We've had great feedback, and in turn have already created a unique following of thousands of Stockmasters. Our asking price is only $45 for a 12 month subscription.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- NeoCoN WeSTWoRLD... | ZeroHedge
- Marissa Mayer Blames “Gender-Charged” Reporting Of Yahoo | ZeroHedge
- USDJPY Plunges On Japan Stimulus Concerns; US Futures Flat With As Fed Begins Meeting | ZeroHedge
- DNC Day 1: Debbie Doesn't Do Philly But Bernie Meets Michelle - Live Feed | ZeroHedge
- China Is Building Its Future on Credit | Financial Sense
- US Futures Unchanged As Europe Stocks Rise; Strong Dollar Pressures Oil | ZeroHedge
- "Credible Evidence" Shows Turkish Authorities Raped And Tortured Detainees Since 'Failed' Coup | ZeroHedge
The most relevant financial news and articles from the Internets
- After Chris Froome quit carbs for protein, he lost 20 pounds, started winning... | Business Insider
- The Superman actor walked around Comic-Con with a mask on and no one noticed | Business Insider
- NBA center Andre Drummond had an upbeat response after being dunked on twice in a... | Business Insider
- THE... | Business Insider
- Check out the new mini-submarine the... | Business Insider
- The Flash actor came to Comic-Con dressed as Gandalf from 'Lord... | Business Insider
- 5 seemingly innocent things you may be doing that make you less likable at... | Business Insider