Jim Cramer’s Game Plan: 13 Stocks in Focus

11. DICK’S Sporting Goods, Inc. (NYSE:DKS)

Number of Hedge Fund Holders: 35

Cramer called DICK’S Sporting Goods, Inc. (NYSE:DKS) a “category killer” and said:

“Now we’ve seen a bunch of retailers’ reports not sweating numbers yet in many cases, their stocks still roared. Meanwhile, others like Target get clubbed like baby seals. It’s treacherous to start buying these now because many of these stocks have run mightily in the last few days. Take that DICK’s Sporting Goods. Now this one jumped eight points just today. Is that good because it’s a sign that numbers will be great or is it bad…? I’m betting it’s actually the former because DICK’s is a category killer and there aren’t that many of these left… I think DICK’s can pull it off.”

DICK’S Sporting Goods (NYSE:DKS) is an omni-channel retailer offering a wide range of sporting goods, including equipment, apparel, footwear, and accessories. The company has focused on enhancing its inventory in recent months, reporting an 11% increase in inventory levels at the close of the second quarter compared to the same period in the prior year.

Management explained that this decision to invest in inventory was a deliberate move to focus on key, differentiated products and categories, which are expected to support growth through the second half of 2024 and into early 2025. For fiscal 2024, the company raised its earnings per share guidance to a range of $13.55 to $13.90, up from its previous forecast of $13.35 to $13.75 per share.

This adjustment represents a modest increase of approximately 18 cents at the midpoint. Additionally, DICK’S Sporting Goods (NYSE:DKS) maintained its overall sales guidance, expecting sales to fall between $13.1 billion and $13.2 billion, which aligns with previous estimates and does not exceed analyst projections. However, the company did raise its outlook for comparable sales growth, now anticipating an increase of between 2.5% and 3.5%, up from the prior forecast of 2% to 3%.