Dick's Sporting Goods Inc

DKS: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$352.00	Zqzypc	Trchvxn

No-Moat Dick’s Sporting Goods Scores Nice Q4 Sales and Offers Reasonable Outlook; Shares Expensive

David Swartz

Mar 7, 2023

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.

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