Dick's Sporting Goods Inc
DKS: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$851.00 | Vwdwzqr | Dppyznrd |
No-Moat Dick’s Sporting Goods Scores Nice Q4 Sales and Offers Reasonable Outlook; Shares Expensive
Dick’s Sporting Goods posted strong sales growth in 2022’s fourth quarter and offered positive 2023 guidance, sending its shares up about 10%. Given its momentum, we expect to lift our $82 fair value estimate by a high-single-digit percentage amount but still view its shares as overvalued. While we think Dick’s operating model is improved and believe its earnings will remain well above prepandemic levels, we also view it as a no-moat retailer in a highly competitive space.