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
- Flying Is About To Get Even More Miserable...Well, At Least For Poor People | ZeroHedge
- Goldman: The S&P 500 Is Not Overvalued–Yet | Financial Sense
- Mulvaney: "Deal To Avoid Government Shutdown Could Come Today" But Won't Due To Border Wall | ZeroHedge
- North Korea Arrests US Citizen, Threatens To Sink US Aircraft Carrier As Japan Deploys Warships | ZeroHedge
- "Total Chaos" - Cyber Attack Feared As Multiple Cities Hit With Simultaneous Power Grid Failures | ZeroHedge
- China, India, and Japan Are Very Interested in Sri Lanka – Here’s Why | Financial Sense
- Krieger: The American Empire Under Trump Has Become Increasingly Desperate, Dangerous, & Insecure | ZeroHedge
The most relevant financial news and articles from the Internets
- Trump is getting slammed for saying 'congratulations'... | Business Insider
- Ask yourself a question from a behavioral economist to make your... | Business Insider
- These magnets are so powerful they attract at speeds of 200... | Business Insider
- See the hidden World Trade Center art gallery Spotify tapped for its headquarters... | Business Insider
- Trump appears to be bringing back the drug war, but cops may not... | Business Insider
- Isaac Newton was a genius, but even he lost millions in the stock... | Business Insider
- House Oversight Committee ranking member: All Democrats deserve blame for 2016 loss | Business Insider