1 Stock to Buy, 1 Stock to Sell This Week: Dick's Sporting Goods, Dollar Tree

Dick's Sporting Goods: A Buy

Dick's Sporting Goods (NYSE: DKS) is a leading sporting goods retailer with over 850 stores in the United States. The company has been a solid performer in recent years, with revenue and earnings growing steadily.

There are several reasons to be bullish on Dick's Sporting Goods.

• The company is benefiting from the growing popularity of athleisure wear.
• Dick's Sporting Goods has a strong e-commerce presence, which is helping to drive sales growth.
• The company is expanding its product offerings to include more outdoor and fitness products.

Analysts are expecting Dick's Sporting Goods to continue to perform well in the coming years. The company is expected to grow revenue and earnings at a rate of 5-7% per year.

Dollar Tree: A Sell

Dollar Tree (NASDAQ: DLTR) is a discount retailer with over 15,000 stores in the United States. The company has been struggling in recent years, as it has been impacted by rising costs and competition from other discount retailers.

There are several reasons to be bearish on Dollar Tree.

• The company's profit margins are thin, which makes it difficult to compete with larger retailers.
• Dollar Tree is facing increasing competition from online retailers, such as Amazon.com (NASDAQ: AMZN).
• The company's customer base is primarily low-income consumers, who are more likely to be affected by economic downturns.

Analysts are expecting Dollar Tree to continue to struggle in the coming years. The company is expected to see revenue and earnings decline in the coming years.

Conclusion

Dick's Sporting Goods and Dollar Tree are two very different companies. Dick's Sporting Goods is a well-run company with a strong track record of growth. Dollar Tree is a struggling company that is facing several challenges.

Based on the analysis above, I would recommend buying Dick's Sporting Goods and selling Dollar Tree.