CBS Corporation (CBS), The Walt Disney Company (DIS): Take a Swing at These Sports Stocks

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A retailer for the do-it-yourself sports enthusiast

For those investors who don’t just watch sports, but enjoy hitting the golf course, basketball court, or baseball diamond themselves, retailer Dicks Sporting Goods Inc (NYSE:DKS) might be a stock for you.

Dicks Sporting Goods Inc (NYSE:DKS) is a $6 billion retailer of sports apparel and equipment, as well as hunting accessories. Dick’s has been firing on all cylinders recently. The company saw consolidated earnings per diluted share jump 17% in 2012 versus the prior year. Furthermore, Dick’s announced its plan to repurchase $1 billion of its own shares over a five-year share buyback authorization. That will mean fewer shares outstanding, providing an assist to the company’s earnings growth.

Dick’s also pays a dividend to shareholders, which yields nearly 1% at recent prices. The stock trades for 21 times trailing earnings.

The Foolish takeaway

Each of these companies profits handsomely from each of America’s beloved sports. Investors in these stocks should take comfort from the fact that America’s love affair with sports isn’t likely to end any time soon.

These stocks are reporting higher sales and profits, and should further benefit from the gradually improving housing and employment markets. Moreover, the American consumer is slowly feeling better about their financial picture, meaning there’s still opportunity for each of these companies to profit handsomely for many years to come.

It’s easy to forget that The Walt Disney Company (NYSE:DIS) is more than just the House of Mouse. True, The Walt Disney Company (NYSE:DIS) amusement parks around the world hosted more than 121 million guests in 2011.

The article Take a Swing at These Sports Stocks originally appeared on Fool.com and is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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