Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dicks Sporting Goods Inc (DKS): One Stock to Own for the Next Decade

Last Sunday, I offered up the Father’s Day Portfolio for investors looking to beat the market over long periods of time. And while I can’t make any promises, of course, I feel pretty darn good about its chances of success. One of the reasons why? Because I added Dicks Sporting Goods Inc (NYSE:DKS) to the mix.

Dicks Sporting Goods Inc (NYSE:DKS)

It ain’t easy
Generally speaking, retailers are pretty tough. There are no real barriers to entry, and moats are pretty hard to come by. But, specialty retailers that provide something unique can be a different story. And I think that’s what we have here with Dicks Sporting Goods Inc (NYSE:DKS). You can see by the chart below that shareholders over the last 10 years are feeling pretty good about life right now:

DKS Total Return Price Chart

DKS Total Return Price data by YCharts

First reason: room to grow
Dicks Sporting Goods Inc (NYSE:DKS) is the largest full-line sporting goods retailer in the U.S. today. With 520 namesake stores to go along with 81 Golf Galaxy stores, it’s established quite the national footprint. But there’s still room for more. Plenty more. Not long ago, management saw room for around 900 Dicks Sporting Goods Inc (NYSE:DKS) stores in the U.S. However, today they see a new opportunity to tap into an additional smaller-store concept, taking that potential market opportunity up to 1,100 stores.

Of course, a major threat to brick-and-mortar retailers is, Inc. (NASDAQ:AMZN). And to be clear, annual sales at Dick’s Sporting Goods are less than 10% of what, Inc. (NASDAQ:AMZN) does in a year. But management recognizes this opportunity, and is building out the company’s e-commerce business. Just last quarter, e-commerce accounted for 5.8% of the company’s total sales compared with 3.7% a year ago. Expect continued aggressive investment in e-commerce as the company expands its reach.

Second reason: a unique experience
Successful specialty retailers succeed because they offer up something that’s unique and different. Dicks Sporting Goods Inc (NYSE:DKS) interactive “store within a store” concept gives a unique and distinct feel to each department. So, when you’re looking for golf stuff, you go into the Golf Pro Shop (or better yet, head on over to your local Golf Galaxy). You say you’re an angler? The Lodge, geared toward hunting and fishing equipment, is where you want to be. It’s a superior in-store experience compared to competitors like Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT).

Brand partnerships also provide Dicks Sporting Goods Inc (NYSE:DKS) with the unique opportunity to offer their customers exclusive products from their most popular suppliers like NIKE, Inc. (NYSE:NKE) and Under Armour Inc (NYSE:UA). Another great example of the win-win-win propostion the stores offer: the business wins, customers win, and its suppliers win. Now that’s what I call #winning.

The article 1 Stock to Own for the Next Decade originally appeared on and is written by Jason Moser.

Jason Moser owns shares of and Nike. The Motley Fool recommends, Nike, and Under Armour. The Motley Fool owns shares of, Nike, and Under Armour.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!