Frances Aertsen
Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Retailer Dick's Sporting Goods, Inc. offers an assortment of sports equipment, apparel, footwear and accessories. It has a market cap of $6-billion (U.S.). It also owns and operates Golf Galaxy, Field & Stream and True Runner specialty stores. It operates about 600 Dick's Sporting Goods stores in 46 states, 78 Golf Galaxy stores in 29 states, 10 Field & Stream stores in five states and three True Runner stores in three states.
Dick's has a 12 month relative strength of 76 and a price/sales ratio of 0.8, a combination that helps it get strong interest from the James O'Shaughnessy-based growth model. The O'Shaughnessy-based strategy also likes that it has upped EPS in each year of the past half-decade.
The company has grown EPS at a 16-per-cent pace over the long term (using an average of the 3-, 4- and 5-year EPS growth rates), which the Peter Lynch based model likes. It has 0.97 yield-adjusted P/E-to-growth ratio, helping it get strong interest from the Lynch model.
It has a debt/equity ratio of under 1 per cent, which the Lynch- and Martin Zweig-based models like, and it gets some interest from the Kenneth Fisher-based model, which likes its low debt, $1.36 in free cash per share, and 5.2-per-cent three-year average net profit margins.
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