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

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1 Stock to Buy, 1 Stock to Sell This Week: Dick’s Sporting Goods, Dollar Tree
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U.S. jobs report, ISM PMI surveys, last batch of earnings will be in focus this week.Unlock access to InvestingPro’s AI-selected stock winners for less than $8 a month!Friday ended a volatile month on Wall Street after an early-August selloff drove the Nasdaq into correction territory. Shares have rebounded since then, with the S&P 500 trading near record highs. For the month, the S&P 500 rose 2.3%, the Dow added 1.8% and the Nasdaq advanced 0.6%.

Dick’s is scheduled to release its Q2 update ahead of the opening bell on Wednesday at 7:00AM ET, and results are likely to have benefitted once again from solid demand for sneakers, apparel and sports equipment from its loyal customer base and a disciplined inventory approach. As such, it is my belief that Dick’s management will provide an upbeat outlook for the current quarter driven by robust sales growth across its athletic apparel and footwear product categories, as well as fitness and outdoor equipment.

Dollar Tree is expected to deliver weak earnings and guidance when it releases its latest financial results on Wednesday before the U.S. market opens at 6:30AM EST, due to rising operating costs and fierce competition from retail giants like Walmart (NYSE: This is compounded by Dollar Tree’s exposure to price-sensitive consumers, who are increasingly turning to larger retailers that offer better deals and a broader product selection.

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