DICK’S Sporting Goods Inc. DKS appears promising, given its strategic measures focused on consolidating store base and using technology to provide better services to customers.

The company has been aggressively expanding its store base and eCommerce capabilities to achieve its long-term revenue target of $8.7–$9.0 billion by the end of fiscal 2017. To attain this target, DICK’S Sporting intends to increase its retail store count to 735–750 by the end of fiscal 2017 from 612 stores at the end of first-quarter fiscal 2015, and invest in the improvement of eCommerce capabilities.

Further, the company’s unique strategy of offering exclusive branded merchandise, sourced from leading manufacturers, provides it with a platform to better compete with other players. Also, DICK’s Sporting leverages its strong vendor relationships to source overstock and closeout merchandise at substantial discounts, in order to achieve the dual objectives of boosting gross margin while offering compelling value to customers.

DICK’s Sporting also enjoys a healthy financial position. The company continues to efficiently utilize cash flows to accomplish its long-term growth target via omni-channel development, store openings, funding of share repurchases and quarterly dividend payments.

All these factors helped the company to deliver solid first-quarter fiscal 2015 results, wherein both the top and bottom lines witnessed year-over-year improvement, and came in line with the Zacks Consensus Estimate. Following the strong results, the company raised the lower end of its previously issued earnings guidance for fiscal 2015. Consequently, the Zacks Consensus Estimate trended upward.

Though DICK’s Sporting appears strong, a significant portion of its merchandise is manufactured abroad. This exposes the company to political, social, currency and economic risks associated with operating internationally. Also, the company remains vulnerable to sluggish economic recovery and cautious consumer spending.

Zacks Rank

DICK’s Sporting currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Big 5 Sporting Goods Corp. BGFV, with a Zacks Rank #1 (Strong Buy), Barnes & Noble Inc. BKS and Cabela's Incorporated CAB, each carrying a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
BIG 5 SPORTING (BGFV): Free Stock Analysis Report
 
CABELAS INC (CAB): Free Stock Analysis Report
 
BARNES & NOBLE (BKS): Free Stock Analysis Report
 
DICKS SPRTG GDS (DKS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research