Undervalued Stock Series #4 - Dicks Sporting Goods $DKS
On the fundamentals :
Their income last 5 years is positive, their revenue have grown last 5 years, their current asset > current liabilities and their Free Cash Flow can deal with their debts (i.e if they decided to pay off all of that debt, they could).
MOAT
Their revenue growth > competitors & industry's average
Their ROIC % > competitors & industry's average
VALUATION
Several valuations have suggested that the current price is on average +48% under the fair price.
On the technicals :
price is trading below the 100-200 EMA . The TSI shadow indicator still suggest we are still in a downtrend. As far as I am concerned, the lower the share price will go, the better. As long as the fundamentals still as it is now, I am happy the share price to go lower.
Price and RSI divergence occurred after price hits weekly low this week.
Price gap at $140 (Bullish Gap fills more than 90% of the time!)
If you don't care to time your entry using technical analysis and if you believe this company has a Wide Moat, you could argue $DKS is a buy right now with more than 35% potential upside especially after the 20+ % correction.
Their income last 5 years is positive, their revenue have grown last 5 years, their current asset > current liabilities and their Free Cash Flow can deal with their debts (i.e if they decided to pay off all of that debt, they could).
MOAT
Their revenue growth > competitors & industry's average
Their ROIC % > competitors & industry's average
VALUATION
Several valuations have suggested that the current price is on average +48% under the fair price.
On the technicals :
price is trading below the 100-200 EMA . The TSI shadow indicator still suggest we are still in a downtrend. As far as I am concerned, the lower the share price will go, the better. As long as the fundamentals still as it is now, I am happy the share price to go lower.
Price and RSI divergence occurred after price hits weekly low this week.
Price gap at $140 (Bullish Gap fills more than 90% of the time!)
If you don't care to time your entry using technical analysis and if you believe this company has a Wide Moat, you could argue $DKS is a buy right now with more than 35% potential upside especially after the 20+ % correction.
