Jim Cramer Emphasizes DICK’S Sporting Goods (DKS) Need to “Explains Its Rationale for the Foot Locker Deal”

We recently published a list of Jim Cramer’s Game Plan: 12 Stocks in Focus. In this article, we are going to take a look at where DICK’S Sporting Goods (NYSE:DKS) stands against other stocks that Jim Cramer discusses.

Noting that DICK’S Sporting Goods, Inc. (NYSE:DKS) stock has recently gone down, Cramer commented:

“Wednesday morning, well, let’s see, we got two retailers, DICK’S Sporting Goods with a stock that’s been crushed and it’s announced its plan to buy Foot Locker last week and Macy’s, the now chronically underperforming department store chain. It is imperative that DICK’S explains its rationale for the Foot Locker deal. Maybe the stock can get some footing, but right now, people think this deal is a game changer in a real bad way for DICK’S. I don’t know what they can say to change that, but I’ll tell you, the stock has just been eviscerated.”

A customer in a specialty concept store wearing a full outfit of apparels and sports gear.

DICK’S Sporting Goods (NYSE:DKS) is a multi-channel retailer that provides a wide range of sports items, including gear, apparel, shoes, and accessories. Conventum – Alluvium Global Fund stated the following regarding DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q4 2024 investor letter:

“DICK’S Sporting Goods, Inc. (NYSE:DKS) (up 10.2%) again released better than expected results. Management noted that its House of Sport rollout continues to progress well, and upgraded its guidance. There was no change to our analysis. In our view it remains most reasonably priced as it continues to generate very high returns on capital, yet trades at around 16 times earnings. But, taking into account the 5/10/40 Fund holding restrictions, and noting Dick’s had grown to 7.7% of the portfolio, we sold a little. It is now 7.1% of the Fund. We are generally comfortable with this holding, despite our niggling concerns regarding possible tariff changes under the Trump Administration.”

Overall, DKS ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of DKS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DKS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.