Deckers (DECK – Free Report) closed the most recent trading day at $207.25, moving +1.32% from the previous trading session. This change outpaced the S&P 500’s 1.26% gain on the day. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.77%.
Heading into today, shares of the maker of Ugg footwear had gained 1.8% over the past month, outpacing the Retail-Wholesale sector’s loss of 1.93% and the S&P 500’s loss of 2.82% in that time.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company is forecasted to report an EPS of $2.44, showcasing a 3.17% downward movement from the corresponding quarter of the prior year. 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 $5.49 per share and a revenue of $4.87 billion, indicating changes of +12.96% and +13.64%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Deckers. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Deckers is currently a Zacks Rank #2 (Buy).
With respect to valuation, Deckers is currently being traded at a Forward P/E ratio of 37.26. For comparison, its industry has an average Forward P/E of 17.03, which means Deckers is trading at a premium to the group.
Meanwhile, DECK’s PEG ratio is currently 2.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Retail – Apparel and Shoes was holding an average PEG ratio of 1.52 at yesterday’s closing price.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% 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.
To follow DECK in the coming trading sessions, be sure to utilize Zacks.com.
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