Summary
- Dick's Sporting Goods just reported its Q1/2019 earnings which came in above expectations and raised full-year guidance.
- The company saw strong comps and online sales despite a weakening sporting goods retail market.
- Despite the good news, this stock should not be bought given the weakening risk/reward.
Dick's Sporting Goods (DKS) is one of the stocks that I have been following for quite a while now. The company is a solid sports retailer but is struggling like most brick and mortar retailers. The good news is that the most recent earnings were quite good. Both sales and earnings came in above expectations and full-year guidance got raised. Unfortunately, the stock sold off after earnings which perfectly shows that traders distrust the future. All things considered, I am sticking to my previous advice: stay away (for now).
Source: Dick's Sporting Goods
