Some investors may look at Dick’s Sporting Goods (NYSE:DKS) stock today and stay away. Others, however, may see the opportunity before them.

So why is Dick’s Sporting Goods stock plunging 6.5% as of this writing? Well, the sports retailer missed on revenue even as earnings beat estimates and guidance moved higher. Despite this setback, Dick’s has survived a shakeout driven by e-commerce that has forced many peers to close their doors.

Moreover, a low valuation and a large in-store and online presence position Dick’s Sporting Goods stock to thrive long term.

Dick’s Sporting Goods Stock Beats on Revenue, Misses on Earnings

Dick’s Sporting Goods stock tumbled by over 8% in morning trading following its quarterly report. On the one hand, the company reported earnings per share (EPS) of $1.20 per share for the second quarter. This beat consensus per-share estimates by 14 cents. The company earned 96 cents per share in the same quarter a year ago.

On the other hand, revenues missed expectations. They came in at $2.18 billion, missing expectations by $60 million. Dick’s brought in $2.16 billion in the same quarter last year. Comparable store sales also fell by 4%. They cited a decision by Under Armour (NYSE:UAA, NYSE:UA) to expand its distribution as a reason for the sales decline. The company also blamed company decisions on lower-margin lines such as electronics.

Despite the revenue disappointments, the company raised earnings guidance. The company now predicts between $3.02 and $3.20 per share in earnings for the fiscal year. Previous guidance had ranged from $2.92 to $3.12 per share. Nonetheless, investors focused on the lower-than-expected revenue as share prices plunged.

Dick’s Can Thrive in This Retail Environment

Dick’s Sporting Goods stock has struggled in recent years. As we all know, e-commerce and companies such as Amazon (NASDAQ:AMZN) caused a shakeout in retail. Dick’s survived as the lone nationwide general sporting goods retailer that trades publicly. Most who remain such as Academy or Big 5 (NASDAQ:BGFV) operate regionally or stay private. Other stores such as Bass Pro Shops, REI, or Foot Locker (NYSE:FL) compete only in specific segments of the business.

Also, Dick’s strongly benefits from having both an e-commerce presence as well as one in-store. First, despite all of the electronic games, people will still play basketball and soccer. They will also want to hunt, fish, and hike in a natural setting. In many cases, they prefer to feel and hold the equipment in-person before buying. If customers have a store they can visit regarding any issues with purchases, that makes it less likely they will buy from Amazon.

Benefits also extend to those who want to buy Dick’s Sporting Goods stock. The latest swoon in the stock price takes the price-to-earnings (PE) ratio close to just under 11. The five-year average P/E stands at about 16.5.

Also, retailers such as Walmart (NYSE:WMT) and Target (NYSE:TGT) trade at higher PE/s. These stores have turned combined their in-store and online presence into a considerable advantage. If Dick’s can do the same, Dick’s Sporting Goods stock could conceivably return to that 16.5 average P/E. Furthermore, the dividend for Dick’s Sporting Goods stock now yields about 2.7%. This 90-cent per share annual dividend has also risen every year since 2015. Hence, shareholders will receive a return while they wait for this recovery.

The Bottom Line on Dick’s Sporting Goods Stock

The swoon in Dick’s Sporting Goods stock following earnings creates a unique opportunity for investors. Wall Street sold off DKS stock as revenues fell short of estimates. However, short-term factors caused this revenue shortfall. These factors do not change the fact that Dick’s has become the only general sports retailer with a nationwide store footprint that publicly trades.

Additionally, the drop in Dick’s Sporting Goods stock takes the P/E ratio under 11. Hence, the stock trades below its own historical average and also below that of other retailers who have turned a combined in-store and online presence into an advantage.

Assuming Dick’s can replicate this model with equal success, I think Dick’s Sporting Goods stock will move higher in the coming months and years.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting.