Dick’s Sporting Goods stock keeps bulls alert ahead of an earnings report?

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Dick’s Sporting Goods Inc. (NYSE:DKS) to $130? That is the prediction of Wedbush analysts, who have recently issued an outperform rating on the stock. The stock has risen by 42.08% in the past six months and has been pushing for a break above key resistance at $115. The third quarter results could be the catalyst for a breakout, and investors are keeping tabs on the developments. Why a strong expectation?

Dick’s Sporting Goods is an omnichannel leader in the retail Sporting Goods Store Industry. The company offers high-quality sports apparel, footwear, and other accessories. In its latest investor note, Wedbush analysts believe the company will outperform Wall Street on November 22. The analysts say strong sales boosted by the back-to-school period will enable the company to beat earnings estimates. The analysts do not see any significant sales or margin impact from the cancellation of the Yeezy line by Adidas. Or the Kyrie line of sneakers by Nike. 

Dick’s Sporting already beat estimates in the second quarter at earnings per share of $3.68. Wall Street had projected $3.58 per share. The revenue was $3.11 billion or £2.64 billion, higher than $3.07 billion or £2.61 billion estimates. During the third quarter results, investors expect Dick’s Sporting to post $2.24 per share earnings. The figures will be closely watched as the company reports earnings, determining the stock’s price direction.

DKS consolidates near a resistance zone 

DKS Stock Chart by TradingView

DKS trades below the resistance at $107. The weekly chart shows this is a consolidation zone and an important level for DKS. The RSI remains above the midpoint, suggesting more buyers than sellers for the stock.

Should you buy DKS now?

While there is a lot of bullish push at the crucial level, investing in DKS now is premature. We need a breakout at $115 to consider a buy trade. If the quarter results come strong, a breakout could be imminent. Our next target for the stock lies at $140.

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