Is Dicks Sporting Goods Inc (DKS) Destined for Greatness?

Dick’s interactive “store within a store” concept gives a unique and distinct feel to each department. When you’re looking for golf stuff, for example you can visit a dedicated Golf Pro Shop. It’s a superior in-store experience compared to big-box competitors, and some of the company’s other brand partnerships also provide Dick’s with the unique opportunity to offer exclusive product to their customers. NIKE, Inc. (NYSE:NKE) and Under Armour Inc (NYSE:UA) both take advantage of having their own block of space within Dick’s locations. This not only provides customers the opportunity to really evaluate the relative worth of each brand across a wide range of products, but it also gives Dick’s a way to upsell its status-conscious buyers on the latest $50 compression shirt or $150 spring-loaded pair of shoes.

Dick’s also rose to the top of the sporting-goods list because of its convenient locations, competitive prices and focused approach on reaching out to digital consumers through social media and apps. Dick’s app has a built-in GPS that automatically helps consumers find the nearest store. You’d think this would be the first thing built into any retailer’s mobile apps, but a surprising number of companies overlook or marginalize such a simple function.

Consumer interest in sporting goods has been steadily increasing in recent years, as the “fit culture” becomes a way of life for millions of desk jockeys. The global sporting goods industry is projected to reach sales of $303 billion by 2015, and the U.S. is by far the world’s leading consumer of these products. However, Dick’s must still contend with Amazon.com, Inc. (NASDAQ:AMZN), which has a few dozen legs up in the e-commerce space. Just last quarter, Dick’s management recognized the need to build out the company’s e-commerce business, which accounted for 5.8% of the company’s total sales, compared with just 3.7% a year ago. Dick’s will aggressively invest in e-commerce space as the company expands its reach. At the same time, sporting goods remains one of the few retail niches that can still thrive on a bricks-and-mortar model. Until Amazon.com, Inc. (NASDAQ:AMZN) has same-day delivery for everything, all the time, there will still be something appealing in actually trying on your running shoes before you buy them.

Putting the pieces together
Today, Dick’s Sporting Goods has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Dick’s Sporting Goods Destined for Greatness? originally appeared on Fool.com.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com, Nike, and Under Armour.

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