Dicks vs. Academy Sports & Outdoors: Which Sporting Good Stock is a Better Investment?
StockNews
Published Sep 28, 2021 02:52PM ET
Updated Sep 28, 2021 03:30PM ET
Dicks vs. Academy Sports & Outdoors: Which Sporting Good Stock is a Better Investment?
With the majority of the U.S. population being vaccinated with at least one dose, and the easing of restrictions, outdoor sports activities are gaining popularity. DICK'S Sporting Goods (DKS) and Academy Sports and Outdoors (ASO) are two companies that should benefit from these industry tailwinds based on their significant market shares. But which of these stocks is a better buy now? Read more to find out.DICK'S Sporting Goods, Inc. (DKS) operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and other accessories. Academy Sports and Outdoors, Inc. (ASO) also operates as a sporting goods and outdoor recreational products retailer in the United States.
With rapid vaccination rollouts and the subsequent easing of social distancing mandates, outdoor activities are gaining traction. The U.S. outdoor and sports industry is witnessing a significant increase in sales this year. According to The NPD Group, equipment sales at sports specialty retail grew by 23% in the first half of 2021, compared to the same period before the pandemic in 2019. This was mainly driven by a 17% gain in brick-and-mortar retail sales and a 31% rise in e-commerce sales. The industry is expected to grow in upcoming months, with significant progress on the vaccination front. Thus, sporting goods stocks DKS and ASO could generate substantial revenues in the near term.
ASO has gained 73.5% over the past six months, while DKS has returned 67.4% over this period. However, DKS’ 132.7% gain year-to-date compares with ASO’s 106.3% return. In terms of the past nine month’s performance, DKS is the clear winner with a 135.3% gain versus ASO’s 112.3%.
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