If You Invested $1000 in Dick’s Sporting Goods a Decade Ago, This is How Much It’d Be Worth Now – February 20, 2023
How much a stock’s price changes over time is an important factor for most investors. In addition to impacting your portfolio, price action can help you compare investment results across sectors and industries.
Another thing that can drive investing is fear of missing out, or FOMO. This is especially true for tech giants and popular consumer-facing stocks.
What if you had invested in Dick’s Sporting Goods (DCS – Free Report) ten years ago? Holding DKS for so long may not have been easy, but if so, how much would your investment be worth today?
Dick’s sporting goods store in detail
With that in mind, let’s take a look at the key business drivers behind Dick’s Sporting Goods.
DICK’S Sporting Goods Inc. was founded in New York in 1948 under the Dick’s Clothing and Sporting Goods, Inc. labels. It was previously re-incorporated as Delaware Corporation and renamed Dick’s Sporting Goods, Inc. in April 1999. The company’s headquarters are in Coraopolis, Pennsylvania.
The company operates as a major omnichannel sporting goods retailer offering athletic footwear, apparel, accessories and a wide range of outdoor and athletic gear for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
DICK’S Sporting offers these items through a mix of associates, in-store services and unique shop-in-shops. DICK’S Sporting also owns Golf Galaxy and Field & Stream stores and Team Sports HQ. It also operates an all-in-one digital youth sports platform that offers scheduling, communication and live scorekeeping via the GameChanger mobile apps, free league management services, custom uniforms and fan apparel.
The Company also operates through its e-commerce websites and catalog stores. The Company operates 4 types of stores – a) single storey DICK’S Sporting stores covering approximately 50,000 square feet, b) double storey DICK’S Sporting stores covering approximately 80,000 square feet, c) DICK’S Sporting stores for smaller markets with space from approximately 35,000 to 40,000 square feet; and d) 13,000-18,000 square foot Golf Galaxy stores.
DICK’s Sporting carries nationally recognized brands such as Callaway Golf, adidas, TaylorMade-adidas Golf, The North Face, Asics, Under Armour, Nike, Columbia and Remington.
bottom line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little risk. So if you invested in Dick’s Sporting Goods a decade ago, you’re probably feeling pretty good about your investment today.
A $1,000 investment made in February 2013 would be worth $2,686.83, or a 168.68% gain, according to our calculations as of February 20, 2023. Investors should note that this yield excludes dividends but includes price appreciation.
In comparison, the S&P 500 is up 168.40% and gold prices are up 13.09% over the same period.
Looking ahead, analysts expect more upside potential for DKS.
DICK’S Sporting shares performed better than the industry last year. The stock’s bullish trend on the stock exchanges is due to a robust surprise trend that continued into the third quarter of fiscal 2022. This was the 10th consecutive quarter of growth in profits and sales. The company posted growth on a two-year basis, driven by the strength of its core strategies. As a result, the outlook for fiscal 2022 has been raised. For fiscal 2022, the company expects negative comps of 1.5-3%, consistent with our comps estimate of negative 2.2%. Its store expansion initiatives, driven by DICK’S House of Sport, Golf Galaxy Performance Center, Public Lands and Going, Going, Gone! stores, a good sign. However, revenue declined year-on-year. Gross margin was impacted by higher advertising activity and investments to support growth strategies.
Shares are up 5.77% over the past four weeks, and there have been two higher revisions to fiscal 2023 earnings estimates compared to no lower. The consensus estimate has also moved up.
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