Analyst Calls Dick's Sporting Goods Stock "Underappreciated"

There is still a great deal of pessimism surrounding the stock

Deputy Editor
Oct 20, 2022 at 9:57 AM
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The shares of Dick's Sporting Goods (NYSE:DKS) are 2.8% at $112.15 at last glance, following an upgrade from Oppenheimer to "outperform" from "perform." The firm called the stock "underappreciated," and sees a rally ahead. 

On the charts, DKS is down 5.1% year-to-date, and has been trading choppy since its summer rally. The stock is currently above all notable daily moving averages, however, and its ascending 60-day trendline has been providing close support recently. 

An unwinding of pessimism amongst options traders and other analysts could provide tailwinds. Of the 18 analysts in coverage, eight still sport a tepid "hold" rating.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DKS' 50-day call/put volume ratio of 1.82 ranks higher than 97% of readings from the past year, indicating puts being picked up at a much faster-than-usual rate in the last 10 weeks. 

There is plenty of short-covering potential, too. Short interest makes up 7.1% of the stock's available float, or over 11 days' worth of pent-up buying power. 

 

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