Dicks Sporting Goods Inc (DKS), Hibbett Sports, Inc. (HIBB), Cabelas Inc (CAB): Is It Finally Time to Buy Sports Retail?

With just 37 stores, its planned opening of six stores in 2013 is a big step for the company’s growth. However, don’t forget about its multi-channel strategy that doesn’t just include retail shoes but also its infamous catalog, which surprisingly is still driving solid returns for the company. In part, because this is something none of the other major retailers offer, it gives Cabelas Inc (NYSE:CAB)’s a differentiation advantage.

Bottom line

Dicks Sporting Goods Inc (NYSE:DKS) is trading at 22 times earnings, which is relatively inline with Hibbett Sports, Inc. (NASDAQ:HIBB) (22 times P/E) and Cabelas Inc (NYSE:CAB)’s (24.5 times). With the rebounding economy, consumers should have more income to spend on sporting goods. Although all three of the companies above operate in the same broad “sports retail” industry, the are very different. It would not be unreasonable to say that each is a buy.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Is It Finally Time to Buy Sports Retail? originally appeared on Fool.com and is written by Marshall Hargrave.

Marshall 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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