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Try To Avoid Getting Caught Up In The Action At Dick's Sporting Goods

Shares of sporting goods retailer Dick's Sporting Goods (NYSE: DKS) have struggled to find daylight over the past year, with its stock price straddling the flat line. The company has been hurt by weakening sales momentum during FY2014, especially for the hunting and golf product categories, as well as from the negative effects of a more promotional selling environment that has helped to chip away at its adjusted operating margin, down roughly 90 basis points. On the upside, though, Dick's Sporting Goods reported an incrementally better sales trend in its latest fiscal quarter, which helped it to post an increase in its adjusted operating income, up 2.3%. In addition, the company's stock price has received a recent lift from rumors about the potential for a private-equity led buyout, indicating that its shares might have more value than the market is currently giving it credit for. So, at current prices, is Dick's Sporting Goods a good bet for…