Deckers (DECK – Free Report) ended the recent trading session at $207.52, demonstrating a +1.18% swing from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Prior to today’s trading, shares of the maker of Ugg footwear had gained 1.25% over the past month. This has outpaced the Retail-Wholesale sector’s loss of 4.61% and the S&P 500’s loss of 2.7% in that time.
The investment community will be closely monitoring the performance of Deckers in its forthcoming earnings report. The company is expected to report EPS of $2.49, down 1.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 8.13% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.53 per share and a revenue of $4.87 billion, indicating changes of +13.79% and +13.64%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.77% increase. As of now, Deckers holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Deckers is at present trading with a Forward P/E ratio of 37.52. For comparison, its industry has an average Forward P/E of 16.64, which means Deckers is trading at a premium to the group.
Investors should also note that DECK has a PEG ratio of 2.89 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Retail – Apparel and Shoes was holding an average PEG ratio of 1.63 at yesterday’s closing price.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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