The support, currently tested, should allow Dicks Sporting Goods to rally.
From a fundamental viewpoint, the company strengths are highlighted by its Surperformance ratings. The sporting goods retailer sales are increasing, and the company improves its profitability year after year. Analysts from Thomson Reuters expect 2015 sales to rise of 11% while net margin should continue to steadily improve reaching 5.6% at the end of 2015. The group has a sound financial situation and offers interesting valuation level when considering EV/Revenue ratio at 0.90 for the current exercise estimates. Moreover, the strong buy consensus from analyst following the stock and the potential offered by the average target price finish to prove the group robustness.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average shows. Nevertheless, the stock seems in an oversold situation, near to its USD 51.70 support level. This level, represented by the bottom of the ascending channel, is an interesting entry level as it should stop the bearish trend and a rebound towards USD 54.60 could take place.
The trading strategy could be to buy Dicks Sporting Goods at the current price. The target will then be USD 54.60. Investors might place a stop loss order under USD 51.7 in order to avoid a bearish overflow.
DICK'S Sporting Goods, Inc. is a full-line omni-channel sporting goods retailer. The Company serves athletes and outdoor enthusiasts in more than 850 DICKâS Sporting Goods, Golf Galaxy, Public Lands, Moosejaw, Going Going Gone! and Warehouse Sale stores, online, and through the DICKâS mobile app. The Company also owns and operates DICK'S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming. It carries a wide variety of national brands, including but not limited to adidas, Asics, Brooks, Callaway Golf, Carhartt, Columbia, Easton, Hoka, Jordan, New Balance and Nike. The Company's vertical brands include brands that it owns across hardlines and softlines and are available exclusively in its stores and online such as Alpine Design, CALIA, DSG, ETHOS, Fitness Gear, MAXFLI, Nishiki, Quest, Top-Flite, and Walter Hagen, as well as brands that it licenses from third parties.
DICK'S SPORTING GOODS, INC. 
