Stock Report | January 21, 2017 | NYS Symbol: DKS | DKS is in the S&P MidCap 400

Dick's Sporting Goods Inc. Recommendation

BUY

★★★★★

Price 12-Mo. Target Price $52.41 (as of Jan 20, 2017 4:00 PM ET) $68.00

Report Currency USD

Investment Style Mid-Cap Growth

Equity Analyst E. Levy-CFA GICS Sector Consumer Discretionary Sub-Industry Specialty Stores

Summary This company is a leading sporting goods retailer operating primarily in the East and Midwest.

Key Stock Statistics (Source S&P Capital IQ, Vickers, company reports) 52-Wk Range $62.88– 36.00 Trailing 12-Month EPS $2.89 Trailing 12-Month P/E 18.1 $10K Invested 5 Yrs Ago $14,131

S&P Oper. EPS 2017E S&P Oper. EPS 2018E P/E on S&P Oper. EPS 2017E Common Shares Outstg. (M)

3.05 3.75 17.2 118.5

Market Capitalization(B) Yield (%) Dividend Rate/Share Institutional Ownership (%)

Price Performance

Beta S&P 3-Yr. Proj. EPS CAGR(%) S&P Quality Ranking

1.17 13 B+

Analyst's Risk Assessment

30-Week Mov. Avg.

10-Week Mov. Avg.

12-Mo. Target Price

Relative Strength

GAAP Earnings vs. Previous Year Up

Down

Volume

No Change

Above Avg.

STARS

Below Avg.

70 60 Share Price

$4.903 1.15 $0.61 87

45 40

LOW

MEDIUM

HIGH

Our risk assessment reflects the highly competitive and cyclical nature of the sporting goods specialty retail industry, which relies heavily on consumer spending. DKS's store expansion strategy, both organic and via acquisition, may result in higher-than-expected costs and lower sales than planned.

35

Volume(Mil.)

Revenue/Earnings Data 45

34

27

28

12 8 4 0 4

5 3 1

FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FM

2012

2013

2014

2015

2016

Past performance is not an indication of future performance and should not be relied upon as such.

Analysis prepared by Equity Analyst E. Levy-CFA on Nov 15, 2016 02:09 PM, when the stock traded at $55.93.

Highlights ➤

➤

➤

We see sales in FY 17 (Jan.) rising about 7.8%, driven by new store expansion, online sales growth, store remodeling and same-store sales up 3% to 6%. Same store sales should benefit from marketing and promotional spending increases, and the potential non-repeat of FY 16's soft cold weather sales and liquidation sales by a major competitor. Merchandising initiatives include the expansion of Nike Fieldhouse, Under Armour and The North Face in-store shops. We see revenues advancing 9.5% in FY 18, on acquisitions, new stores and higher same-store sales. We look for lower operating margin in FY 17, after factoring in about about $50 million $55 million of temporary incremental spending on certain initiatives and the impact of competitor liquidations. We expect lower gross margins and increased advertising costs needed to support sales growth, new store openings and increased costs associated with e-commerce initiatives (including consumer shipping costs and migration to a company controlled platform). For FY 17, we estimate EPS of $3.05, including $0.29 of incremental investments, compared to FY 16's adjusted $2.87.

Investment Rationale/Risk ➤

➤

➤

DKS should gain market share as the company continues to expand and some competitors close stores. DKS has a differentiated strategy in a crowded arena, and it has merchandised and managed its products very well. Also, while we favor the company's brand focus, macroeconomic trends should limit its growth somewhat over the medium term, with consumer spending on discretionary items likely to remain soft in a weak economic environment. Recently, the shares traded at a discount to its own average multiple. Risks to our recommendation and target price include a slowdown in consumer spending, increased competition in the sporting goods retail space from discounters and other retailers, and difficulties in integrating acquired businesses. Unfavorable weather is also a risk. Our 12-month target price of $68 applies a 18.1X P/E multiple to the $3.75 FY 18 estimate we see for the year. This is a modest discount to its 10-year average forward P/E of 18.3X. Sales and margin pressure from competitors' Q2 liquidation and store consolidation was much less than we expected. We expect DKS to take market share as competitors close stores.

Revenue (Million $) 1Q 2Q 2017 1,660 1,968 2016 1,565 1,823 2015 1,439 1,689 2014 1,334 1,531 2013 1,282 1,437 2012 1,114 1,307

3Q 1,810 1,643 1,527 1,401 1,312 1,180

4Q -2,240 2,160 1,947 1,805 1,612

Year -7,271 6,814 6,213 5,836 5,212

Earnings Per Share ($) 2017 0.50 0.82 2016 0.53 0.77 2015 0.57 0.57 2014 0.52 0.67 2013 0.45 0.43 2012 0.30 0.59

0.44 0.41 0.41 0.40 0.40 0.33

E1.32 E1.15 1.30 1.11 1.03 0.88

E3.05 2.83 2.84 2.69 2.31 2.10

Fiscal year ended Jan. 31. Next earnings report expected: NA. EPS Estimates based on S&P Capital IQ Operating Earnings; historical GAAP earnings are as reported in Company reports.

Dividend Data Amount ($)

0.151 0.151 0.151 0.151

Date Decl.

Feb 23 May 13 Aug 11 Nov 10

Ex-Div. Date

Stk. of Record

Mar 9 Mar 11 Jun 8 Jun 10 Sep 7 Sep 9 Dec 7 Dec 9

Payment Date

Mar 31 Jun 30 Sep 30 Dec 30

'16 '16 '16 '16

Dividends have been paid since 2011. Source: Company reports. Past performance is not an indication of future performance and should not be relied upon as such.

Redistribution or reproduction is prohibited without written permission. Copyright ©2017 CFRA. This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek independent financial advice regarding the suitability and/or appropriateness of making an investment or implementing the investment strategies discussed in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such investments, if any, may fluctuate and that the value of such investments may rise or fall. Accordingly, investors may receive back less than they originally invested. Investors should seek advice concerning any impact this investment may have on their personal tax position from their own tax advisor. Please note the publication date of this document. It may contain specific information that is no longer current and should not be used to make an investment decision. Unless otherwise indicated, there is no intention to update this document.

Stock Report | January 21, 2017 | NYS Symbol: DKS

Dick's Sporting Goods Inc. Business Summary November 15, 2016 Founded in 1948, Dick's Sporting Goods operated 717 sporting goods stores (644 Dick's Sporting Goods and 73 Golf Galaxy locations) in 47 states as of January 30, 2016. DKS grew significantly through the July 2004 acquisition of sporting goods retailer Galyan's Trading Company, Inc. Galyan's provided Dick's with an immediate presence in new markets. In 2007, DKS acquired Golf Galaxy, Inc. and Chick's Sporting Goods. The company offers sporting goods equipment, apparel and footwear for men, women and children. The company offers a range of sporting goods and active apparel to appeal to the beginner, intermediate and enthusiast sports consumer. The Apparel category consists of athletic apparel, outerwear and sportswear designed for a range of activities and performance levels, as well as apparel designed and fabricated for specific sports in men's, women's and children's assortments. Technical and performance specific apparel includes offerings for sports such as golf, tennis, running, fitness, soccer, baseball, football, hockey, swimming, cycling and licensed products. Basic sportswear includes T-shirts, shorts, sweats and warm-ups. The Footwear Center, featuring hardwood floors and a track for testing athletic shoes, offers a selection of athletic shoes for running and walking, tennis, fitness and cross training, basketball and hiking. In addition, the company also carries specialty footwear, including casual footwear and a line of cleated shoes for baseball, football, soccer and golf. Other categories within the footwear department are boots, socks and accessories. The company's product lines include a selection of fitness equipment, including treadmills, elliptical trainers, stationary bicycles, home gyms, free weights and weight benches. A range of equipment and accessories are available for team sports, such as football, baseball, basketball, hockey, soccer, bowling and lacrosse. Family recreation offerings include lawn games and table games such as ping-pong, foosball and air hockey. The Sportsman's Lodge, designed to have the look of an authentic bait and tackle shop, caters to the outdoorsman and includes an offering of equipment for hunting, fishing, camping and water sports. Hunting products include rifles, shotguns, ammunition, global positioning systems, hunting apparel, boots and optics including binoculars and scopes, knives and cutlery, archery equipment and accessories. Fishing gear, such as rods, reels, tackle and accessories are offered along with camping equipment, including tents and sleeping bags. Equipment offerings for marine and water sports include navigational electronics, water skis, rafts, kayaks, canoes and accessories. The Pro Shop, a golf shop with a putting green and indoor driving range, includes an assortment of golf clubs and club sets, bags, balls, shoes, teaching aids and accessories. DKS carries a range of products featuring golf suppliers, such as TaylorMade, Callaway, Titleist, Cobra, FootJoy and Nike Golf, as well as brands, Walter Hagen, Maxfli and Slazenger. The company's Cycle Shop features a selection of BMX, all-terrain, freestyle and touring bicycles, scooters and skateboards. In addition, DKS also offers a range of cycling accessories including helmets, bicycle carrier racks, gloves, water bottles and repair and maintenance parts. The company purchases merchandise from approximately 1,500 vendors. Its major supplier in FY 16 was Nike, representing about 20% of merchandise purchases. Under Armour accounted for 12%. In addition to maintaining a relatively aggressive store expansion program in recent years, DKS has, on occasion, made acquisitions that spurred entry into new geographic markets or key product areas. While offering a full line of high-quality brand-name merchandise at competitive prices, Dick's seeks to heighten the customer's interest in products by utilizing a specialty "store-within-a-store" concept. This includes the Pro Shop, with a putting green and instructional golf videos; the Footwear Center, which features a track for testing athletic shoes and in-line skates; the Cycle Shop, with specialized tools and equipment in a mechanic's work area to service bikes; the Sportsman's Lodge, featuring gear for the hunter and fisherman in an atmosphere of an authentic bait and tackle shop; and Total Sports, a seasonal sports area dedicated to sports such as hockey and baseball. The company seeks to instill customer loyalty by enhancing customer performance and enjoyment of athletic pursuits by offering valued-added services such as bicycle repair and maintenance, and through the placement of sports experts, such as Professional Golf Association members and certified fitness trainers in stores.

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Corporate Information Investor Contact D. Magulick (724-273-3400) Office 345 Court Street, Coraopolis, PA 15108. Telephone 724-273-3400. Fax 724-227-1902. Website http://www.dickssportinggoods.com

Officers Chrmn & CEO E.W. Stack

EVP & CFO L.J. Belitsky

Vice Chrmn W.J. Colombo

SVP, Secy & General Counsel J.E. Hayes, III

COO & EVP A.J. Hawaux

Board Members M. J. Barrenechea E. Chirico J. A. Fouse E. W. Stack A. R. Weiss

Domicile Delaware Founded 1948 Employees 37,200 Stockholders 271

V. C. Byrd W. J. Colombo L. J. Schorr L. D. Stone

Auditor DELOITTE & TOUCHE, Houston

Stock Report | January 21, 2017 | NYS Symbol: DKS

Dick's Sporting Goods Inc. Quantitative Evaluations S&P Capital IQ Fair Value Rank Fair Value Calculation

Expanded Ratio Analysis

5+

1

3

4

5 HIGHEST

Based on S&P Capital IQ's proprietary quantitative model, stocks are ranked from most overvalued (1) to most undervalued (5).

$65.90 Analysis of the stock's current worth, based on S&P Capital IQ's

proprietary quantitative model suggests that DKS is Undervalued by $13.49 or 25.7%.

Investability Quotient Percentile

93 LOWEST = 1

LOW BEARISH

AVERAGE

2016 0.85 8.42 11.68 18.77 116.8

2015 0.63 5.68 7.71 12.45 121.2

2014 1.00 8.92 11.42 18.48 125.6

2013 1.25 11.28 14.94 25.18 126.0

Figures based on calendar year-end price

Key Growth Rates and Averages

UNFAVORABLE

NEUTRAL

Past Growth Rate (%) Sales Net Income

1 Year

3 Years

5 Years

9 Years

6.70 -4.01

7.81 4.11

8.54 11.87

9.19 NM

Ratio Analysis (Annual Avg.) Net Margin (%) % LT Debt to Capitalization Return on Equity (%)

4.54 0.01 18.25

5.01 0.02 19.46

5.01 1.88 18.81

3.89 7.31 15.47

HIGH

Since December, 2016, the technical indicators for DKS have been BEARISH.

Insider Activity

Price/Sales Price/EBITDA Price/Pretax Income P/E Ratio Avg. Diluted Shares Outstg (M)

HIGHEST = 100

DKS scored higher than 93% of all companies for which an S&P Capital IQ Report is available.

Volatility Technical Evaluation

2

LOWEST

FAVORABLE

Company Financials Fiscal Year Ended Jan. 31 Per Share Data ($) Tangible Book Value Cash Flow Earnings S&P Capital IQ Core Earnings Dividends Payout Ratio Calendar Year Prices:High Prices:Low P/E Ratio:High P/E Ratio:Low

2016 13.24 4.49 2.83 NA 0.55 19% 2015 60.33 33.42 21 12

2015 12.88 4.32 2.84 NA 0.50 18% 2014 58.87 41.30 21 15

2014 11.52 3.92 2.69 NA 0.50 19% 2013 58.40 45.00 22 17

2013 10.47 3.30 2.31 NA 2.50 108% 2012 54.24 34.42 23 15

2012 11.39 3.03 2.10 NA 0.50 22% 2011 42.97 29.10 20 14

2011 9.37 2.40 1.50 NA NA Nil 2010 38.10 22.08 25 15

2010 7.27 2.00 1.15 NA Nil Nil 2009 26.00 10.26 23 9

2009 5.77 0.52 -0.31 NA Nil Nil 2008 33.86 9.21 NM NM

2008 4.54 1.98 1.33 NA Nil Nil 2007 36.78 24.14 28 18

2007 4.32 1.51 1.02 NA Nil Nil 2006 28.15 16.32 28 16

Income Statement Analysis (Million $) Revenue Operating Income Depreciation Interest Expense Pretax Income Effective Tax Rate Net Income S&P Capital IQ Core Earnings

7,271 737 194 4.01 531 37.8% 330 NA

6,814 754 179 3.21 556 38.1% 344 NA

6,213 700 155 2.93 546 38.2% 338 NA

5,836 649 125 6.03 490 40.7% 291 NA

5,212 546 117 13.9 432 38.9% 264 NA

4,871 430 110 14.0 298 38.8% 182 NA

4,413 337 101 4.54 223 39.4% 135 NA

4,130 332 92.6 11.1 21.8 NM -35.1 NA

3,888 344 75.1 12.9 258 39.8% 155 NA

3,114 253 54.9 10.8 188 40.0% 113 NA

Balance Sheet & Other Financial Data (Million $) Cash 119 Current Assets 1,813 Total Assets 3,559 Current Liabilities 1,192 Long Term Debt 0.23 Common Equity 1,789 Total Capital 1,790 Capital Expenditures 370 Cash Flow 524 Current Ratio 1.5 % Long Term Debt of Capitalization 0.0 % Net Income of Revenue 4.5 % Return on Assets 9.5 % Return on Equity 18.3

222 1,850 3,436 1,119 0.35 1,832 1,833 349 524 1.7 0.0 5.1 10.6 19.5

182 1,620 3,071 1,003 0.46 1,692 1,693 286 493 1.6 0.0 5.4 11.3 20.6

345 1,596 2,888 1,001 0.56 1,587 1,588 219 416 1.6 0.0 5.0 9.9 18.1

734 1,868 2,996 940 152 1,633 1,633 202 380 2.0 0.0 5.1 9.4 17.6

546 1,564 2,598 849 140 1,364 1,504 159 292 1.8 9.3 3.7 7.5 14.9

226 1,222 2,245 796 141 1,083 1,225 140 236 1.5 11.5 3.1 6.4 13.7

74.8 1,050 1,967 615 181 896 1,077 217 57.5 1.7 16.8 NM NM NM

50.3 1,070 2,036 762 205 889 1,093 172 230 1.4 18.7 4.0 8.7 20.6

136 870 1,524 565 194 621 814 190 168 1.5 23.8 3.6 8.3 21.8

Data as originally reported in Company reports.; bef. results of disc opers/spec. items. Per share data adj. for stk. divs.; EPS diluted. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review. Redistribution or reproduction is prohibited without written permission. Copyright ©2017 CFRA.

Stock Report | January 21, 2017 | NYS Symbol: DKS

Dick's Sporting Goods Inc. Sub-Industry Outlook

Industry Performance

Our fundamental outlook for the specialty stores sub-industry is neutral. Driven by improving employment trends, lower gas prices and higher stock markets, we estimate total consumer spending to advance relatively in line with the projected 1.5% and 2.4% growth of overall 2016 and 2017 real GDP growth, respectively. We think this lackluster spending will have an adverse impact on specialty retailers. However, this sub-industry is diverse, ranging from high-end stores selling luxury items such as jewelry, to those selling less discretionary items such as automotive parts. As a result, our outlook varies according to the unique prospects of the individual companies and/or groups that constitute the sub-industry.

GICS Sector: Consumer Discretionary Sub-Industry: Specialty Stores

products for Internet shopping include computers, books, apparel, electronics, and toys. Still, we do not foresee the demise of brick and mortar retailing. Most specialty retailers are continuing to build new stores, filling in existing markets, while penetrating new markets including smaller markets with downsized stores. We think that companies with a strong brand name, aggressive brand support, and a mix of traditional stores and websites will likely be solid performers in the long run.

Based on S&P 1500 Indexes Five-Year market price performance through Jan 21, 2017 S&P 1500

Year to date through December 9, 2016, the S&P Specialty Stores Index were up 9.3%, compared to an 11.8% increase for the S&P 1500 Index. In 2015, this sub-industry index underperformed, decreasing 21.9% compared to the 1.0% decline in the S&P 1500.

Sub-Industry

110%

% Change

We expect mixed results for specialty retailers in 2017. In our view, auto parts retailers have several positive demographic trends going for them and should post solid results as many consumers continue to favor maintaining their current vehicles over purchasing new ones, but face challenges from expect post-peak new vehicle sales in 2017. We also favor higher-end luxury and jewelry stores, as wealthy consumers have been relatively insulated from many of the economic challenges that have been plaguing consumers. Pet supplies retailers should also post relatively strong results, by our analysis, bolstered by solid industry trends. However, expected weakness in consumer spending has us somewhat cautious with regard to other "discretionary" stores, such as bookstores and arts and crafts. In addition, office supply retailers are likely to struggle amid a slowdown in spending by small businesses and government. For the longer term, we see superstore growth slowing as other channels continue to make inroads. With increasing penetration of Internet services, including broadband, more U.S. households are shopping via the Internet in the comfort of their homes. Favored

Sector

160%

60%

--Efraim Levy, CFA 10%

-40%

-90% 2011

2012

2013

2014

2015

2016

NOTE: All Sector & Sub-Industry information is based on the Global Industry Classification Standard (GICS) Past performance is not an indication of future performance and should not be relied upon as such.

Sub-Industry : Specialty Stores Peer Group*: Sporting Goods Retailers Peer Group Dick's Sporting Goods Big 5 Sporting Goods Cabela's Inc Hibbett Sports West Marine

Stock Symbol

Stk.Mkt. Cap. (Mil. $)

Recent Stock Price($)

52 Week High/Low($)

DKS

4,903

52.41

62.88/36.00

BGFV CAB HIBB WMAR

338 3,909 827 218

15.65 57.08 33.60 9.51

20.35/8.16 63.60/38.90 45.85/29.59 11.42/7.70

Beta

Yield (%)

P/E Ratio

Fair Value Calc.($)

1.17

1.2

18

65.90

B+

93

4.5

Nil

1.84 1.54 1.17 1.42

3.8 Nil Nil Nil

25 23 11 45

13.80 61.30 49.20 NA

B B B+ B-

87 43 92 71

1.5 4.7 7.5 0.6

21.6 23.4 NA NA

NA-Not Available NM-Not Meaningful NR-Not Rated. *For Peer Groups with more than 15 companies or stocks, selection of issues is based on market capitalization.

Redistribution or reproduction is prohibited without written permission. Copyright ©2017 CFRA.

S&P Return on Quality IQ Revenue Ranking %ile (%)

LTD to Cap (%)

Stock Report | January 21, 2017 | NYS Symbol: DKS

Dick's Sporting Goods Inc. Analyst Research Notes and other Company News November 15, 2016 01:35 pm ET ... S&P CAPITAL IQ MAINTAINS BUY OPINION ON SHARES OF DICK'S SPORTING GOODS (DKS 55.89****): We increase our 12-month target by $3 to $68, or 18.1X our $3.75 FY 18 (Jan.) EPS estimate (up $0.15) near its 10-year average forward P/E of 18.3X. Our FY 17 EPS forecast, increased by $0.03 to $3.05, includes $0.29 of incremental FY 17 investments. Inventory was well-managed, in our view, with growth at quarter-end of 4.8%, less than half of sales' 10.2% expansion. DKS posts Oct-Q adjusted EPS of $0.48 vs. $0.45, $0.04 above the Capital IQ consensus, aided by better than expect sales, including 5.2% higher same-store sales (vs. expected 2.9% to decline is same-store sales). /E. Levy-CFA October 4, 2016 Dick's Sporting Goods Inc. announced that Lee J. Belitsky has been appointed Executive Vice President, Chief Financial Officer, effective immediately. In this capacity, Mr. Belitsky will oversee the Finance organization and continue to have executive leadership of the Merchandise Planning, Allocation and Replenishment organization. His responsibilities for the Product Development organization will be moved internally within the Company. Mr. Belitsky joined DICK'S as Vice President, Controller in 1997 and was appointed Treasurer in 2005. Since that time, he has held a number of leadership positions, including Senior Vice President, Distribution/Transportation; Senior Vice President, Store Operations and Distribution/Transportation; Senior Vice President, Strategic Planning and Analysis and Treasury Services; Senior Vice President, Chief Risk and Compliance Officer; and Senior Vice President, Product Development. Most recently, Mr. Belitsky served as Executive Vice President, Product Development and Merchandise Planning, Allocation and Replenishment. August 16, 2016 12:43 pm ET ... S&P GLOBAL KEEPS BUY OPINION ON SHARES OF DICK'S SPORTING GOODS INC. (DKS 58.97****): We increase our 12-month target by $17 to $65, or 18X our $3.60 FY 18 (Jan.) EPS estimate (up $0.15) at a modest discount to its 10-year average forward P/E of 18.3X. Sales and margin pressure from competitors' Q2 liquidation and store consolidation was much less than we expected. Our FY 17 EPS forecast, increased by $0.22 to $3.02, includes $0.29 of incremental FY 17 investments. Jul-Q EPS of $0.82, vs. $0.77, is $0.13 above the Capital IQ consensus, helped by much better than expect sales, including 2.8% higher same-store sales (vs. an expected decline is same-store sales). /E. Levy-CFA August 15, 2016 Dick's Sporting Goods Inc. has announced that Teri List-Stoll is no longer EVPChief Financial Officer of the company. Andr Hawaux, the company's EVP- Chief Operating Officer, will serve as the principal financial officer on an interim basis until the company appoints a successor. Mr. Hawaux became Executive Vice President - Chief Operating Officer in August 2015. From February 2015 to August 2015, Mr. Hawaux served as Executive Vice President- Chief Operating Officer/Chief Financial Officer. From June 2013 to January 2015, Mr. Hawaux served as Executive Vice President- Finance, Administration and Chief Financial Officer. Prior to joining the company, Mr. Hawaux served as the President, Consumer Foods of ConAgra Foods Inc. from January 2009 to May 2013. May 19, 2016 11:36 am ET ... S&P GLOBAL REITERATES BUY OPINION ON SHARES OF DICK'S SPORTING GOODS (DKS 41.05****): We reduce our FY 17 (Jan.) operating EPS estimate by $0.13 to $2.80, to reflect expected near-term sales and margin pressure from competitors liquidation and store consolidation. Our target applies a 15X P/E multiple to our $3.22 EPS estimate after exluding $0.29 of incremental FY 17 investments and $0.13 from the industry consolidation impact. This is below its historical average forward P/E reflecting near-term pressure. However, we see an EPS rebound to $3.45 in FY 18. Apr-Q EPS of $0.50 vs. $0.53, is $0.01 above the Capital IQ consensus, helped by rising online sales. /E. Levy-CFA March 8, 2016 11:28 am ET ... S&P CAPITAL IQ REITERATES BUY OPINION ON SHARES OF DICK'S SPORTING GOODS (DKS 42.89****): We reduce our 12-month target by $2 to $48. We lower our FY 17 (Jan.) EPS estimate by $0.32 to $2.93, including an estimated $0.29 of temporary incremental investment. Our target applies a 15X P/E multiple to the $3.22 estimate adjusted for the $0.29. This is below its historical average forward P/E reflecting reduced earnings visibility. Yet, we expect DKS to take market share as competitors close stores. We see longer-term growth, Redistribution or reproduction is prohibited without written permission. Copyright ©2017 CFRA.

aided by a healthy balance sheet. Posts Jan-Q EPS of $1.13, vs. $1.30, $0.02 below our estimate, as results were hurt by unseasonably warm weather. /E. Levy-CFA November 17, 2015 02:51 pm ET ... S&P CAPITAL IQ MAINTAINS BUY OPINION ON SHARES OF DICK'S SPORTING GOODS (DKS 36.30****): We reduce our 12-month target $11 to $50, or 15.5X our FY 17 (Jan.) EPS estimate of $3.20 (cut $0.32). We reduce FY 16's $0.30 to $2.90. Unusually warm weather should hurt cold weather product sales. Combined with high inventories at DKS and competitors, we expect material discounting to hurt margins in Q4. Our valuation is below its historical average reflecting near-term challenges and reduced earnings visibility. Still, we expect longer-term growth, supported by a healthy balance sheet. DKS posts adjusted Oct-Q EPS of $0.45, vs. $0.41, $0.01 below the Capital IQ consensus. /E. Levy-CFA August 18, 2015 03:23 pm ET ... S&P CAPITAL IQ REITERATES BUY OPINION ON SHARES OF DICK'S SPORTING GOODS INC. (DKS 52.16****): We increase our FY 17 (Jan.) EPS estimate $0.03 to $3.57, nearly 12% above over the $3.20 (up $0.02) we now see for FY 16. Our 12-month target of $61 equates to 17.1X our FY 17 forecast, near its three year average forward P/E multiple. It also equates to about 1.25X our three-year expected compound annual EPS growth outlook for DKS. We forecast 9% revenue growth this year and next, via new stores openings and low single digit higher comparable store sales. DKS posts Jul-Q EPS of $0.77, vs. an adjusted $0.67, above our $0.75 and DKS guidance, with revenues near estimates. /E. Levy-CFA

Stock Report | January 21, 2017 | NYS Symbol: DKS

Dick's Sporting Goods Inc. Analysts' Recommendations Monthly Average Trend

Wall Street Consensus Opinion Buy

Buy/Hold

Hold

Weak Hold

B

BH

H

WH

Sell S

No Opinion

BUY/HOLD

DKS Trend

Companies Offering Coverage

Wall Street Average B BH H WH S

Number of Analysts Following Stock 60 40 20

Stock Price ($ 000) 1000

1000

1000

1000

F

M

A

M

J

J

A

S

O

N

D

J

F

M

A

M

J

2015

J

A

S

O

N

D

J

2016

Of the total 33 companies following DKS, 33 analysts currently publish recommendations. No. of Recommendations 18 3 12 0 0 0 33

Buy Buy/Hold Hold Weak Hold Sell No Opinion Total

% of Total

1 Mo. Prior 3 Mos. Prior

55 9 36 0 0 0 100

0 0 0 0 0 0 0

17 2 13 0 0 0 32

Wall Street Consensus Estimates Estimates

2016

Wall Street Consensus vs. Performance 2017

2018

2016 Actual $2.83

5 4 3 2

S

O

N

D

J

F

M

A

M

J

2015

Fiscal Years 2018 2017 2018 vs. 2017 Q4'18 Q4'17 Q4'18 vs. Q4'17

Over 30 firms follow this stock; not all firms are displayed. Argus Research Company B. Riley & Co. BMO Capital Markets Equity Research Barclays BofA Merrill Lynch Brean Capital Canaccord Genuity Citigroup Inc Cleveland Research Company Consumer Edge Research, LLC Cowen and Company Credit Suisse Deutsche Bank Forward View Consulting, LLC Goldman Sachs Guggenheim Securities, LLC JP Morgan MKM Partners LLC Monness, Crespi, Hardt & Co., Inc. Morgan Stanley Morningstar Inc. Oppenheimer & Co. Inc. RBC Capital Markets Raymond James & Associates Robert W. Baird & Co. Stephens, Inc. Stifel SunTrust Robinson Humphrey, Inc. Susquehanna Financial Group, LLLP Telsey Advisory Group LLC

J

A

S

O

N

D

J

2016

Avg Est. 3.78 3.10 22%

High Est. 4.11 3.19 29%

Low Est. 3.55 3.04 17%

# of Est. 32 31 3%

Est. P/E 13.9 16.9 -18%

1.59 1.31 21%

1.70 1.39 22%

1.48 1.24 19%

18 29 -38%

33.0 40.0 -18%

A company's earnings outlook plays a major part in any investment decision. S&P Capital IQ organizes the earnings estimates of over 2,300 Wall Street analysts, and provides their consensus of earnings over the next two years, as well as how those earnings estimates have changed over time. Note that the information provided in relation to consensus estimates is not intended to predict actual results and should not be taken as a reliable indicator of future performance.

Redistribution or reproduction is prohibited without written permission. Copyright ©2017 CFRA.

For fiscal year 2017, analysts estimate that DKS will earn US$ 3.10. For the 3rd quarter of fiscal year 2017, DKS announced earnings per share of US$ 0.44, representing 14% of the total annual estimate. For fiscal year 2018, analysts estimate that DKS's earnings per share will grow by 22% to US$ 3.78.

Stock Report | January 21, 2017 | NYS Symbol: DKS

Dick's Sporting Goods Inc. Glossary S&P Capital IQ STARS Since January 1, 1987, S&P Capital IQ Equity Research has ranked a universe of U.S. common stocks, ADRs (American Depositary Receipts), and ADSs (American Depositary Shares) based on a given equity's potential for future performance. Similarly, S&P Capital IQ Equity Research has ranked Asian and European equities since June 30, 2002. Under proprietary STARS (STock Appreciation Ranking System), equity analysts rank equities according to their individual forecast of an equity's future total return potential versus the expected total return of a relevant benchmark (e.g., a regional index (S&P Asia 50 Index, S&P Europe 350® Index or S&P 500® Index)), based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective. Data used to assist in determining the STARS ranking may be the result of the analyst's own models as well as internal proprietary models resulting from dynamic data inputs.

S&P Capital IQ Quality Ranking (also known as S&P Capital IQ Earnings & Dividend Rankings) - Growth and stability of earnings and dividends are deemed key elements in establishing S&P Capital IQ's earnings and dividend rankings for common stocks, which are designed to capsulize the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings. The final score for each stock is measured against a scoring matrix determined by analysis of the scores of a large and representative sample of stocks. The range of scores in the array of this sample has been aligned with the following ladder of rankings: A+ Highest B Below Average A High B- Lower A- Above Average C Lowest B+ Average D In Reorganization NR Not Ranked

S&P Capital IQ EPS Estimates S&P Capital IQ earnings per share (EPS) estimates reflect analyst projections of future EPS from continuing operations, and generally exclude various items that are viewed as special, non-recurring, or extraordinary. Also, S&P Capital IQ EPS estimates reflect either forecasts of equity analysts; or, the consensus (average) EPS estimate, which are independently compiled by Capital IQ, a data provider to S&P Capital IQ Equity Research. Among the items typically excluded from EPS estimates are asset sale gains; impairment, restructuring or merger-related charges; legal and insurance settlements; in process research and development expenses; gains or losses on the extinguishment of debt; the cumulative effect of accounting changes; and earnings related to operations that have been classified by the company as discontinued. The inclusion of some items, such as stock option expense and recurring types of other charges, may vary, and depend on such factors as industry practice, analyst judgment, and the extent to which some types of data is disclosed by companies.

S&P Capital IQ Core Earnings S&P Capital IQ Core Earnings is a uniform methodology for adjusting operating earnings by focusing on a company's after-tax earnings generated from its principal businesses. Included in the definition are employee stock option grant expenses, pension costs, restructuring charges from ongoing operations, write-downs of depreciable or amortizable operating assets, purchased research and development, M&A related expenses and unrealized gains/losses from hedging activities. Excluded from the definition are pension gains, impairment of goodwill charges, gains or losses from asset sales, reversal of prior-year charges and provision from litigation or insurance settlements.

S&P Capital IQ 12-Month Target Price The equity analyst's projection of the market price a given security will command 12 months hence, based on a combination of intrinsic, relative, and private market valuation metrics, including S&P Capital IQ Fair Value.

S&P Capital IQ Equity Research S&P Capital IQ Equity Research is produced and distributed by Accounting Research & Analytics, LLC d/b/a CFRA ("CFRA US"). Certain research is distributed by CFRA UK Limited (together with CFRA US, "CFRA"). Certain research is produced by Standard & Poor's Malaysia Sdn. Bhd ("S&P Malaysia") under contract to CFRA US. S&P CAPITAL IQ™ is used under license. The owner of this trademark is S&P Global Inc. or its affiliate, which are not affiliated with CFRA or the author of this content.

Abbreviations Used in S&P Capital IQ Equity Research Reports CAGR - Compound Annual Growth Rate CAPEX - Capital Expenditures CY - Calendar Year DCF - Discounted Cash Flow DDM - Dividend Discount Model EBIT - Earnings Before Interest and Taxes EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization Redistribution or reproduction is prohibited without written permission. Copyright © 2017 CFRA.

EPS - Earnings Per Share EV - Enterprise Value FCF - Free Cash Flow FFO - Funds From Operations FY - Fiscal Year P/E - Price/Earnings P/NAV - Price to Net Asset Value PEG Ratio - P/E-to-Growth Ratio PV - Present Value R&D - Research & Development ROCE - Return on Capital Employed ROE - Return on Equity ROI - Return on Investment ROIC - Return on Invested Capital ROA - Return on Assets SG&A - Selling, General & Administrative Expenses SOTP - Sum-of-The-Parts WACC - Weighted Average Cost of Capital

Dividends on American Depository Receipts (ADRs) and American Depository Shares (ADSs) are net of taxes (paid in the country of origin). S&P Capital IQ Qualitative Risk Assessment Reflects an equity analyst's view of a given company's operational risk, or the risk of a firm's ability to continue as an ongoing concern. The Qualitative Risk Assessment is a relative ranking to the S&P U.S. STARS universe, and should be reflective of risk factors related to a company's operations, as opposed to risk and volatility measures associated with share prices. For an ETF this reflects on a capitalization-weighted basis, the average qualitative risk assessment assigned to holdings of the fund.

STARS Ranking system and definition:

★★★★★ 5-STARS (Strong Buy):

Total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis. ★★★★★ 4-STARS (Buy): Total return is expected to outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis. ★★★★★ 3-STARS (Hold): Total return is expected to closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis. ★★★★★ 2-STARS (Sell): Total return is expected to underperform the total return of a relevant benchmark over the coming 12 months, and the share price not anticipated to show a gain. ★★★★★1-STAR (Strong Sell): Total return is expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.

Relevant benchmarks: In North America, the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are the S&P Europe 350 Index and the S&P Asia 50 Index, respectively.

Stock Report | January 21, 2017 | NYS Symbol: DKS

Dick's Sporting Goods Inc. Disclosures S&P GLOBAL™ and S&P CAPITAL IQ™ are used under license. The owner of these trademarks is S&P Global Inc. or its affiliate, which are not affiliated with CFRA or the author of this content. Stocks are ranked in accordance with the following ranking methodologies:

STARS Stock Reports: Qualitative STARS recommendations are determined and assigned by equity analysts. For reports containing STARS recommendations refer to the Glossary section of the report for detailed methodology and the definition of STARS rankings.

Quantitative Stock Reports: Quantitative recommendations are determined by ranking a universe of common stocks based on 5 measures or model categories: Valuation, Quality, Growth, Street Sentiment, and Price Momentum. In the U.S., a sixth sub-category for Financial Health will also be displayed. Percentile scores are used to compare each company to all other companies in the same universe for each model category. The five (six) model category scores are then weighted and rolled up into a single percentile ranking for that company. For reports containing quantitative recommendations refer to the Glossary section of the report for detailed methodology and the definition of Quantitative rankings.

STARS Stock Reports and Quantitative Stock Reports: The methodologies used in STARS Stock Reports and Quantitative Stock Reports (collectively, the "S&P Capital IQ Research Reports" or "Research Reports") reflect different criteria, assumptions and analytical methods and may have differing recommendations. The methodologies and data used to generate the different types of Research Reports are believed by the author and distributor reasonable and appropriate. Generally, CFRA does not generate reports with different ranking methodologies for the same issuer. However, in the event that different methodologies or data are used on the analysis of an issuer, the methodologies may lead to different views or recommendations on the issuer, which may at times result in contradicting assessments of an issuer. CFRA reserves the right to alter, replace or vary models, methodologies or assumptions from time to time and without notice to clients.

Global STARS Distribution as of September 30, 2016 North America 25.0% 50.6% 24.4% 100%

Europe 29.3% 53.7% 17.0% 100%

Past performance is not necessarily indicative of future results. This document may contain forward-looking statements or forecasts; such forecasts are not a reliable indicator of future performance. This report is not intended to, and does not, constitute an offer or solicitation to buy and sell securities or engage in any investment activity. This report is for informational purposes only. Recommendations in this report are not made with respect to any particular investor or type of investor. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors and this material is not intended for any specific investor and does not take into account an investor's particular investment objectives, financial situations or needs. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Additional information on a subject company may be available upon request. CFRA's financial data provider is S&P Global Market Intelligence. THIS DOCUMENT CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM S&P GLOBAL MARKET INTELLIGENCE. FOR RECIPIENT'S INTERNAL USE ONLY.

STARS Stock Reports: Ranking Buy Hold Sell Total

The content of this report and the opinions expressed herein are those of CFRA based upon publicly-available information that CFRA believes to be reliable and the opinions are subject to change without notice. This analysis has not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body. While CFRA exercised due care in compiling this analysis, CFRA AND ALL RELATED ENTITIES SPECIFICALLY DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, to the full extent permitted by law, regarding the accuracy, completeness, or usefulness of this information and assumes no liability with respect to the consequences of relying on this information for investment or other purposes. No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of CFRA. The Content shall not be used for any unlawful or unauthorized purposes. CFRA and any third-party providers, as well as their directors, officers, shareholders, employees or agents do not guarantee the accuracy, completeness, timeliness or availability of the Content.

Asia 16.1% 77.4% 6.5% 100%

Global 24.6% 54.7% 20.7% 100%

Analyst Certification STARS Stock Reports are prepared by the equity research analysts of CFRA and S&P Malaysia, under contract to CFRA. All of the views expressed in STARS Stock Reports accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. Analysts generally update stock reports at least four times each year. No part of analyst, CFRA, or S&P Malaysia compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in a STARS Stock Report. About S&P Capital IQ Equity Research's Distributors: This Research Report is published and originally distributed by CFRA US, with the following exceptions: In the UK/EU/EEA, it is published and originally distributed by CFRA UK Limited, an Appointed Representative of Hutchinson Lilley Investments LLP, which is regulated by the Financial Conduct Authority (No. 582181), and in Malaysia by S&P Malaysia, which is regulated by Securities Commission Malaysia, (No. CMSL/A0181/2007) under license from CFRA US, and its subsidiaries do not distribute reports to individual (retail) investors and maintain no responsibility for reports redistributed by third parties such as brokers or financial advisors.

General Disclosure Notice to all jurisdictions: Where Research Reports are made available in a language other than English and in the case of inconsistencies between the English and translated versions of a Research Report, the English version will control and supersede any ambiguities associated with any part or section of a Research Report that has been issued in a foreign language. Neither CFRA nor its affiliates guarantee the accuracy of the translation.

Redistribution or reproduction is prohibited without written permission. Copyright © 2017 CFRA.

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Capital IQ, Inc. ("Capital IQ"). GICS is a service mark of MSCI and Capital IQ and has been licensed for use by CFRA. For residents of the European Union/European Economic Area: Research reports are originally distributed by CFRA UK Limited (company number 08456139 registered in England & Wales with its registered office address at 131 Edgware Road, London, W2 2AP, United Kingdom). CFRA UK Limited is an Appointed Representative of Hutchinson Lilley Investments LLP, which is regulated by the UK Financial Conduct Authority (No. 582181). For residents of Malaysia: Research reports are originally produced and distributed by S&P Malaysia, under license from CFRA US. S&P Malaysia is regulated by Securities Commission Malaysia (License No. CMSL/A0181/2007). For residents of all other countries: Research reports are originally distributed Accounting Research & Analytics, LLC d/b/a CFRA. Copyright © 2017 CFRA. All rights reserved. CFRA, the CFRA inverted pyramid logo, and STARS are registered trademarks of CFRA.