Q2 STOCKS TO BUY

Dick's Sporting Goods Earnings Reaction Could Spook Shorts

DKS seems ripe for a short squeeze

Managing Editor
Nov 28, 2018 at 10:18 AM
facebook X logo linkedin


The shares of Dick's Sporting Goods, Inc. (NYSE:DKS) are up 3% to trade at $37.48 this morning, after the athletic goods retailer reported stronger-than-expected third-quarter adjusted profit of 30 cents per share, greater than the 26 cents per-share estimate from analysts. While revenue was in-line with expectations, the company also upped its full-year guidance.

On the charts, DKS nabbed an annual high of $39.75 back on Nov. 14. The shares pulled back from there, but quickly found support at their 160-day moving average, a trendline with bullish implications. Overall, the equity now boasts a 30% lead in 2018.

A short squeeze could keep the wind at DKS' back. Short interest fell by 2.4% in the most recent reporting period, yet the 18.01 million shares sold short represents a hefty 24% of the stock's total available float, and nearly seven days of pent-up buying power, at its average pace of trading. 

Analysts have yet to come through with any bull notes, reflective of their overall skepticism. Of the 17 brokerages covering DKS, 11 rate it a "hold" or "strong sell," while its consensus 12-month price target sits at $39.05, just below its annual highs. A fresh round of bullish analyst attention could also vault the retail stock higher. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter