I’m not a “buy the dip” investor, but that doesn’t mean I can’t spot a market overreaction when I see it.
Instead of a cookie-cutter approach, Dick’s Sporting Goods reallocated its retail space to regionally relevant and growing merchandise.
A 9.5% increase last year may not seem like much, but it was the chain’s headiest growth in six fiscal years.
Put another way, net sales so far this fiscal year are up 46% compared with two years ago.
You would expect a stock with this kind of growth would be trading at a healthy premium to the market, but new guidance calls for adjusted earnings per share to clock in between $14.60 and $14.80 this fiscal year.
An entirely different sports play — with an entirely different valuation play — is Genius Sports.
After back-to-back years of 31% revenue growth, the game is starting to pick up the pace for Genius Sports.
Genius Sports also raised its full-year guidance last week, but — to be fair — the increase is less than the amount of its third-quarter beat.
However, with the stock now more than 60% below its springtime high — and below the $10 price of the SPAC that eventually took it public — it’s a good price for a company that is emerging as a basket play for the expanding sportsbook market.