Jim Cramer’s Game Plan: 12 Stocks in Focus

3. DICK’S Sporting Goods, Inc. (NYSE:DKS)

Number of Hedge Fund Holders: 44

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.”

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.”