Guggenheim analyst Steven Forbes has maintained their neutral stance on DKS stock, giving a Hold rating on June 23.
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Steven Forbes has given his Hold rating due to a combination of factors surrounding Dick’s Sporting Goods’ recent strategic moves. The company’s proposed acquisition of Foot Locker has been a significant point of consideration. Current consensus expectations for Foot Locker’s future financial performance are notably lower than the management’s projections, indicating potential challenges ahead.
Furthermore, Dick’s Sporting Goods’ management has acknowledged the substantial efforts and investments required to enhance Foot Locker’s profitability. Despite the stock’s seemingly attractive valuation, these uncertainties and the necessary capital commitments lead to a cautious stance. Therefore, Forbes maintains a neutral perspective, balancing the potential benefits of the acquisition against the inherent risks.
Forbes covers the Consumer Cyclical sector, focusing on stocks such as Dick’s Sporting Goods, RH, and Best Buy Co. According to TipRanks, Forbes has an average return of 12.3% and a 57.82% success rate on recommended stocks.