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Fast Money Traders Debate Dicks Sporting Goods

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On CNBC's Fast Money, Pete Najarian and Josh Brown shared their thoughts about Dicks Sporting Goods (NYSE: DKS) after the company posted earnings on Tuesday.

Najarian is bullish on the stock because he is encouraged by its revenue growth. He also thinks that the golf segment of Dicks Sporting Goods is a problem and the company is trying to address this issue by cutting exposure to the segment.

Instead of focusing on golf, the company is expanding its youth and women apparel, which should be positive for the sales growth, thinks Najarian. He added that Dicks Sporting Goods invested $260 million in the golf segment and that is a small part of their business. Even if Dicks writes it off, sales would decrease just around 10 percent.

Brown has been bearish on this stock since May and after the 15 percent gap lower, nothing has changed in his view. He thinks that while the other stocks are making new highs, there is no objective reason to buy a broken chart.

The company has a serious business problem and he is worried by a decline in net income. Brown thinks that the golf problem is not going away and he doesn't want to buy the stock because there are far better opportunities in the market right now.

Posted-In: Josh Brown Pete NajarianCNBC Long Ideas Short Ideas Fast Money Media Trading Ideas

 

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