We recently published a list of Jim Cramer’s Latest Lightning Round: Top 10 Stocks. In this article, we are going to take a look at where DICK’S Sporting Goods Inc (NYSE:DKS) stands against other top stocks that Jim Cramer discusses in latest lightning round.
Jim Cramer in a latest program on CNBC reiterated his view that the market volatility stems from President Donald Trump’s ever-changing policies and temperament that often spooks investors. He also talked about the increasing chances of recession:
“The stock market matters as a bellwether for the country, not just as a wealth creator. You can gauge the country’s mood from the market, and as of Thursday, it was correcting itself from a positive attitude to a negative one, from an exuberant one to a solemn one, and that’s how you get a recession. Now, it might be true that the old Trump created too much enthusiasm, and that enthusiasm could have led to the euphoria … before COVID hit, he presided over a fantastic economy with great job growth, no inflation, and he did it lightly. He did with a smile. He was consistent in the optimism and his get it done attitude. I miss that President Trump. This new second term President Trump is angry, lashes out especially on Truth Social, and his approach is so inconsistent that it frightens all sorts of business owners to the point where they don’t know what to do. They can’t get their heads around this moly front trade work. They thought they had a friend in the White House, but suddenly it’s like they have an enemy who seems upset and angry with them. The president expressed his fury, and all sorts of workers from all sorts of businesses, many of them voted for them, are worried about their jobs.”
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In this article we picked 10 stocks Jim Cramer was talking about in his latest programs. With each company we have mentioned its latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer in a specialty concept store wearing a full outfit of apparels and sports gear.
DICK’S Sporting Goods Inc (NYSE:DKS)
Number of Hedge Funds Investors: 35
Jim Cramer in a program on CNBC predicted that DICK’S Sporting Goods Inc (NYSE:DKS) will report a strong quarter.
“I’m keen on Dick’s Sporting Goods, which is pulling away from the others in the sports category. I think they’ll deliver a very strong set of numbers, and it jumps like a pole vaulter when you get that kind of number, so it might be worth being in.”
Cramer was right. DKS beat the latest quarterly estimates on both earnings and revenue. Revenue came in at about $3.9 billion in sales, higher than Street’s forecast and up year over year. Comparable sales rose 6.4% increase.
Forward guidance projects revenue between $13.6 billion and $13.9 billion, with comparable sales growth of 1-3%. Projected EPS for the year ranges from $13.8 to $14.4. At the current share price of $210, the forward earnings multiple is 14.8x, suggesting an attractive valuation given anticipated EPS growth and dividend distributions.
Conventum – Alluvium Global Fund stated the following regarding DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q4 2024 investor letter:
“DICK’S Sporting Goods, Inc. (NYSE:DKS) (up 10.2%) again released better than expected results. Management noted that its House of Sport rollout continues to progress well, and upgraded its guidance. There was no change to our analysis. In our view it remains most reasonably priced as it continues to generate very high returns on capital, yet trades at around 16 times earnings. But, taking into account the 5/10/40 Fund holding restrictions, and noting Dick’s had grown to 7.7% of the portfolio, we sold a little. It is now 7.1% of the Fund. We are generally comfortable with this holding, despite our niggling concerns regarding possible tariff changes under the Trump Administration.”
Overall, DKS ranks 8th on our list of top stocks that Jim Cramer discusses in latest lightning round. While we acknowledge the potential of DKS, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DKS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
