In the latest market close, Deckers (DECK – Free Report) reached $209.43, with a +0.68% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the maker of Ugg footwear had gained 8.47% over the past month, outpacing the Retail-Wholesale sector’s gain of 2.87% and the S&P 500’s gain of 1.05% in that time.
The upcoming earnings release of Deckers will be of great interest to investors. It is anticipated that the company will report an EPS of $2.44, marking a 3.17% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, up 8.13% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.49 per share and a revenue of $4.87 billion, signifying shifts of +12.96% and +13.64%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Deckers. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.09% upward. Deckers presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Deckers is currently exchanging hands at a Forward P/E ratio of 37.9. This indicates a premium in contrast to its industry’s Forward P/E of 17.72.
It’s also important to note that DECK currently trades at a PEG ratio of 2.92. 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 1.44 at yesterday’s closing price.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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