A recent momentum stock signal was generated in Dick’s Sporting Goods, Inc (DKS). We have several different entry techniques, breakouts, trending, etc; however, one of them is buying a stock that we believe is still bullish, but oversold. In other words, it’s a discount buy.
As you can see in the chart below, DKS is well off of its recent high of $38.99. The buy signal went out yesterday to buy $34.50 or lower and as I write this, DKS is +2%. Why it was bought there, and what its risk is are discussed in our Momentum Stocks trading room.
There are 24 analysts offering 12-month price forecasts for Dick’s and they’re all above the current price. The median target of the group is $38.50, with the highest estimate at $46.00.
The median estimate would be nice, but I’m rooting for the analyst that had the highest estimate to be correct.