D2KS34 trade ideas
DKS eyes on $212 for KEY support: break could end Bull RunRetail stocks have been flying to record highs.
DKS is retesting a Major zone as possible support.
Strong bull bounces here, or we risk much deeper.
$ 212.03 - 210.66 is the strongest support for some distance.
$ 238.70 - 242.55 is the nearest significant resistance above.
$ 132.21 - 135.32 is next major support with minors between.
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Dicks Is Drifting Before the HolidaysDicks Sporting Goods began the year with a breakout to new highs. Now, after a long period of consolidation, some traders may see potential for another push to the upside.
The first pattern on today’s chart is the rally in the first quarter, plus two bullish earnings gaps. Results also beat estimates in September but the stock failed to advance. Those patterns may reflect positive fundamentals as attention focused elsewhere.
Next, the retailer has spent seven months above its peaks from 2021 and 2023. Has new support been established above old highs?
Third is the September low of $202.35. DKS tested and held this level in October. That could suggest another new support area has emerged at an even higher location.
Fourth, prices have remained above the rising 200-day simple moving average (SMA). They’re also near the 50-day SMA. Both of those points are potentially consistent with positive trends over the long- and intermediate terms.
DKS ended Friday by pushing above a falling trendline. It also had the highest close since September 4. Traders may view these points as early signs of a potential breakout.
Finally, U.S. retail sales beat estimates last week for the fourth straight month and the holiday-shopping season is coming into view. Investors may like that bigger picture for DKS.
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Dick’s Sporting Goods Set to Report Q2 Earnings Results TodayAs Dick’s Sporting Goods (NYSE: NYSE:DKS ) prepares to announce its second-quarter fiscal 2024 earnings on September 4, all eyes are on the specialty retail giant. Investors and analysts alike are eager to see if the company can continue its impressive performance from the previous quarters, particularly given the robust growth expectations and the broader positive sentiment within the sector. Here's a detailed look at both the fundamental and technical aspects of DKS ahead of its earnings release.
Strong Revenue Growth and Strategic Execution
Revenue Expectations:
NYSE:DKS has consistently outperformed analyst expectations, and this quarter seems poised to be no different. Analysts project a revenue increase of 6.5% year-over-year, reaching $3.43 billion. This marks an improvement from the 3.6% growth recorded in the same quarter last year, highlighting the company’s strong operational momentum. The previous quarter’s results saw DKS exceed analysts’ revenue estimates by 2.7%, reporting $3.02 billion in revenue, up 6.2% year-on-year. This consistency in meeting or exceeding expectations speaks volumes about the company's resilience and adaptability in a highly competitive market.
Earnings Forecasts:
Adjusted earnings are projected at $3.85 per share, which would represent a 31.9% increase from the previous year. With a trailing four-quarter earnings surprise average of 4.7%, Dick’s has a history of beating estimates, underscoring the strength of its strategic initiatives. The company’s recent emphasis on merchandising, store improvements, and focusing on high-demand categories like footwear, athletic apparel, and team sports has proven successful, boosting average ticket sizes and driving higher transaction growth.
Sector Performance and Analyst Sentiment:
Investors have shown a favorable attitude toward the specialty retail segment, with share prices up 4.5% on average over the last month. NYSE:DKS , in particular, has outperformed, gaining 20% during the same period. The stock's bullish momentum is reflected in the positive revisions by analysts who continue to reconfirm their estimates, signaling confidence in Dick’s business trajectory. The company’s forward-looking price-to-earnings ratio of 16.41x, though below its five-year high of 24.78x, still sits above the industry average of 16.03x, indicating a premium valuation tied to expected strong future performance.
Challenges and Headwinds:
While NYSE:DKS is well-positioned, it faces challenges. Rising operating costs, notably higher selling, general and administrative (SG&A) expenses, and inflationary pressures present significant headwinds. Investments in technology, talent, and marketing, along with wage increases, have elevated operating costs, which could weigh on margins. Additionally, the volatile macroeconomic environment, characterized by shifting consumer behavior, poses further risks that could impact future results.
Bullish Momentum Building Ahead of Earnings
Current Stock Performance
In anticipation of the upcoming earnings report, NYSE:DKS stock is up 2.96% in Wednesday’s premarket trading, suggesting growing investor optimism. The stock’s current trading patterns point to a continuation of bullish momentum, with the relative strength index (RSI) edging up to 60, compared to Tuesday’s 59. A sustained RSI above 60 typically signals strong buying pressure, which aligns well with the positive pre-earnings sentiment.
Key Technical Indicators:
NYSE:DKS has been capitalizing on recent gains, positioning itself strongly ahead of the trading session. The stock's recent movements are bullish, supported by robust buying interest as investors anticipate positive earnings news. Key support levels are currently established around $230, with resistance expected at $240, near the stock’s average analyst price target of $238.9. A break above this resistance could pave the way for further gains, potentially pushing the RSI deeper into overbought territory.
Market Sentiment and Peer Comparison:
Sentiment within the specialty retail segment is largely positive, as evidenced by the performance of DKS’s peers. For example, Sally Beauty, which reported a 1.2% year-on-year revenue growth, saw an 8.4% increase in its share price following results. This peer performance trend suggests that the market is rewarding companies that meet or beat expectations, providing a favorable backdrop for Dick’s Sporting Goods as it prepares to report.
Outlook and Conclusion
Dick’s Sporting Goods is entering its earnings season on a strong note, buoyed by consistent revenue growth, strategic initiatives, and favorable analyst sentiment. Fundamentally, the company’s execution of its merchandising strategies and focus on high-demand product categories have proven effective, driving both top-line and bottom-line growth.
However, rising operating expenses and the broader economic uncertainties cannot be ignored. Investors should be cautious of the impact of higher SG&A expenses and inflation on future profitability. From a technical standpoint, the stock is showing bullish signs with a rising RSI, but the presence of key resistance levels suggests that some volatility may lie ahead.
Overall, NYSE:DKS is well-positioned to deliver another strong earnings report, but it remains crucial for investors to stay vigilant of any unexpected shifts in consumer behavior or cost pressures that could alter the positive trajectory. As always, a close eye on both technical and fundamental developments will be essential in navigating the stock’s movements post-earnings.
DKS DICK'S Sporting Goods Options Ahead of EarningsAnalyzing the options chain and the chart patterns of DKS DICK'S Sporting Goods prior to the earnings report this week,
I would consider purchasing the 240usd strike price Calls with
an expiration date of 2025-1-17,
for a premium of approximately $24.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Theoretical Entry based on HTF buy-side TaperingHere's how I would play a short on this if the confirmations present themselves and it wasn't earnings later this week. I stay away from earnings plays as much as I can especially without a deeper understanding of the fundamentals of the company. They are trading at ATH's so they must be doing something right!
Happy Trading :)
DKS 5/16/2023DKS
"Long" Dicks are for chicks.
Daily Chart Analysis
Prior to Covid, DKS had lost its Uptrend and had been moving sideways since 2014.
In 2017, the sideways range broke down signaling the start of a downtrend.
At this point Price pulled back to previous support looking to turning it into resistance. Then covid happened. Price was blasted down all the way to 14.
Our government proceeded then to print a bunch of fake money which reversed the downtrend and sent this stock in an uptrend from 14 to 131 dollars!
After reaching all-time highs, price fell back down, and then we saw the dead cat bounce.
Price has reached all-time highs again but has formed a Double Top patten and the neckline was just broken to confirm the reversal pattern.
So, what do we have here?
A stock that was in the start of downtrend up until the whole circus of Covid came into town.
The entire move was fabricated by all the money printed by the government. As you’ve seen with many of the other stocks, they all have given back the Covid gains and then some. It will be no different with DKS.
Entering trade short.
Entry: 131.42
Stoploss: 155.14 (-18.05%)
Target #1: 64.54 (+50.89%), 2.82 RR ratio
Target #2: 14.33 (+89.10%), 4.94 RR ratio
Dick’s Sporting Goods Hits Record Sales Quarter, Raises DividendDick’s Sporting Goods ( NYSE:DKS ), the renowned athletic goods retailer, has delivered a stellar performance in its latest fiscal quarter, surpassing Wall Street's expectations and marking its largest sales quarter in history. As the company raises its dividend by 10% and projects another year of growth, investors are buoyed by the promising outlook and robust financial results.
The announcement sent Dick’s Sporting Goods ( NYSE:DKS ) shares soaring by over 13% in morning trading, reflecting the market's enthusiastic response to the company's strong performance. CEO Lauren Hobart attributed the sales growth to an increase in average ticket size, driven by either higher prices or more expensive items, highlighting the company's ability to drive revenue growth even without the benefit of an additional week in fiscal 2023.
In the fiscal fourth quarter, Dick’s reported adjusted earnings per share of $3.85, surpassing analysts' expectations of $3.35. Revenue also exceeded estimates, reaching $3.88 billion compared to the anticipated $3.80 billion. The company's reported net income for the period was $296 million, a substantial increase from $236 million a year earlier.
With a focus on industry-leading assortment and strong execution, Dick’s Sporting Goods has positioned itself for continued success in 2024. The company is confident in its ability to drive sales and earnings growth through positive comparable store sales, higher merchandise margins, and productivity gains.
During the quarter, same-store sales rose 2.8%, outpacing analysts' expectations and driven by growth in transactions and market share gains. Looking ahead to fiscal 2024, Dick’s expects earnings per share to be between $12.85 and $13.25, with revenue forecasted to range between $13 billion and $13.13 billion. The company anticipates same-store sales to rise by 1% to 2%.
In light of its strong performance, Dick’s Sporting Goods ( NYSE:DKS ) has raised its quarterly dividend by 10% to $1.10 per share, underscoring its commitment to returning value to shareholders. However, the company remains mindful of challenges in the current quarter, particularly regarding gross margin trends due to higher rates of shrink.
Despite these challenges, Dick’s remains optimistic about the holiday shopping season, emphasizing a cautious approach while remaining competitive in the market. With a focus on controlling what is within its power, Dick’s Sporting Goods is poised to navigate uncertainties and capitalize on opportunities for continued growth and success.
As investors await further developments, Dick’s Sporting Goods stands as a beacon of resilience and strength in the retail landscape, demonstrating its ability to adapt and thrive in a dynamic and evolving market environment. With a track record of innovation and customer-centric strategies, Dick’s is well-positioned to deliver value for both investors and customers alike in the years to come.
Dicks Has Snuck to New HighsDicks Sporting Goods has been rallying since November, and now it may be breaking out.
The first pattern on today’s chart is $149.73, the previous daily closing high from March 8, 2023. The retailer stalled around this level in August and December. However, it broke above the price zone in mid-January and made a new low there last week. Has old resistance become new support?
Second, the bullish price gap on November 21 after the last set of quarterly numbers may reflect improving fundamentals.
Third, the 8-day exponential moving average (EMA) has remained above the 21-day EMA. That may indicate the short-term trend is bullish.
Next, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA in early January. That may indicate the long-term trend has gotten bullish.
Finally, MACD has recently turned positive.
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Important Information
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures or cryptocurrencies); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a futures commission merchant licensed with the Commodity Futures Trading Commission (“CFTC”). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association (“NFA”), and a number of exchanges. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services under federal and state money services business/money-transmitter and similar registrations and licenses.
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DKSNYSE:DKS
Current Price: $148.23
Dick's Sporting Goods, Inc. is an American chain of sporting goods stores.
Technical Assessment: DKS has absorbed overhead supply at $147 for over 2 years, with sellers clearly controlling the level. This is also in line with the all-time highs while the price has traded in a sideways range for this period. In recent weeks, the price has been strong, with another test of $147. This is one of my favourite kind of setups. Here, a break above $148-$150 could mean a 'next leg up' and a continuation of the long term bull trend.
11/21/23 pre-market earnings watch11/21/23 pre-market earnings watch:
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DKS DICK'S Sporting Goods Options Ahead of EarningsAnalyzing the options chain and the chart patterns of DKS DICK'S Sporting Goods prior to the earnings report this week,
I would consider purchasing the 115usd strike price Puts with
an expiration date of 2023-12-15,
for a premium of approximately $5.40.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
DKS anchored VWAP levelsDICK'S Sporting Goods (DKS) reported earnings of 2.82 per share on revenue of 3.22 billion for the fiscal second quarter ended July 2023. The consensus earnings estimate was 3.76 per share on revenue of 3.23 billion. The company missed expectations by 30.37% while revenue grew 3.57% on a year-over-year basis. The company said it expects fiscal 2024 earnings of 11.50 to 12.30 per share. The company's previous guidance was earnings of 12.90 to 13.80 per share for the year ending January 31, 2024.
Someone shorted DKS ahead of earnings. When looking at DKS 9/8 expiry options data there was a 3.48 Put/Call Open Interest Ratio. When you compare the 9/8 expiry to other expiration dates 8/25, 9/1 & 9/15, it sticks out like a sore thumb. 3.48 in contrast to .82, .69 & .63 comparatively.
Here's DKS YTD anchored VWAP levels:
R3 = 160
R2 = 152
R1 = 144
YTD anchored VWAP = 136
S1 = 128
S2 = 119
S3 = 111
DKS options data:
8/25 expiry
Put Volume Total 10,894
Call Volume Total 9,928
Put/Call Volume Ratio 1.10
Put Open Interest Total 2,982
Call Open Interest Total 3,640
Put/Call Open Interest Ratio 0.82
9/1 expiry
Put Volume Total 504
Call Volume Total 931
Put/Call Volume Ratio 0.54
Put Open Interest Total 433
Call Open Interest Total 627
Put/Call Open Interest Ratio 0.69
9/8 expiry
Put Volume Total 100
Call Volume Total 323
Put/Call Volume Ratio 0.31
Put Open Interest Total 1,639
Call Open Interest Total 471
Put/Call Open Interest Ratio 3.48
9/15 expiry
Put Volume Total 1,014
Call Volume Total 1,713
Put/Call Volume Ratio 0.59
Put Open Interest Total 8,312
Call Open Interest Total 13,200
Put/Call Open Interest Ratio 0.63
DKS DICK'S Sporting Goods Options Ahead of EarningsAnalyzing the options chain and the chart patterns of DKS DICK'S Sporting Goods prior to the earnings report this week,
I would consider purchasing the 147usd strike price Calls with
an expiration date of 2023-8-25,
for a premium of approximately $4.95.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Dicks Sporting ,,, Buy opportunity Uptrend
As you see the chart has good trend/ correction waves and after this breakout, it's a buying opportunity.
DKS - ready to climb again into ATH?Many stocks have been climbing the "wall of worry" in a choppy fashion. But the fact remains that many of these stocks are still climbing.
It is also important to try to pick stocks that are already showing some positive attributes (eg those that were breaking out of a base formation or already started to move above the 200day moving average etc). Whether to sit tight through steep retracements or to swing in and out depends on one's entry level and risk tolerance.
Despite being choppy with retracements of at least 50-60% of each mini upswings, DKS has been on the uptrend since Nov last year, trading not only above it's 200 day MA but also above it's upward sloping 50day MA since 27 Dec.
It eventually broke above a longer term horizontal resistance @ 137 on 7 March (after earnings beat) but soon started yet another steep retracement. This time all the way back down below this "resistance turned support" level, just to fill the gap @ 133 and then started to rebound yesterday.
A bullish divergence (between price and RSI) is now apparent. Hence, it is probably ripe to long this recent pullback as soon as price starts to go above yesterday's candle high @ 139 with initial stop loss just sllghtly below the recent pivot low at 133.
Let's see if this "resistance turning support @ 137" is going to hold this time as DKS begins it's journey into ATH (all-time-high). Manage with trailing stops.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
DKS - Trend ReversionDKS has an earnings breakout gap that has been filled. Still strong G/G trend.
Options are expensive ($10/contract), so I set trade up as a stock buy. Looking for a profit target just below volume resistance and near 50% retracement.
Trade Theme Trend Reversion
Sector/Stock DKS
Trend G/G
Propulsion 34ema
Vscore Yes
Vprofile No
RAF No
Darvas Yes
Darvas 3.0 Yes
Entry 139.3 Minor Low Breakout. Look for improvement on breakout pullback.
Profit/Breakeven 143.8 50% Fib retracement and Volume resistance.
Stop Loss 133.75
Double top on Dicks?Recession has started, it's march, one year ago this month the Fed started raising rates. Lag effect is dissipating. Last hoorah before the big sell off?
I am in cash and bonds...
DKS Setup from the Everyday TraderThis entry qualifies both as a Crossover Gap and a KCA Surge signal. These signals appear to show a sustained an persistent edge over time so even if the next trade showing them doesn't turn profitable, statistically they are worth taking. Risk only 1% per trade and make enough of these trades and you'll see the benefit.
Another pokePrice is heading to test the resistance again. Check my previous post below. Will it break up? I'll wait before adding more.
DKS DICK'S Sporting Goods Options Ahead of EarningsLooking at the DKS DICK'S Sporting Goods options chain ahead of earnings , I would buy the $110 strike price Puts with
2024-1-19 expiration date for about
$10.40 premium.
If the options turn out to be profitable Before the earnings release, I would sell at least 50%.
Looking forward to read your opinion about it.
