The latest trading session saw Deckers (DECK – Free Report) ending at $204.54, denoting a +0.71% adjustment from its last day’s close. The stock’s performance was ahead of the S&P 500’s daily loss of 0.22%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.16%.
The maker of Ugg footwear’s stock has dropped by 0.52% in the past month, exceeding the Retail-Wholesale sector’s loss of 1.69% and the S&P 500’s loss of 2.36%.
Market participants will be closely following the financial results of Deckers in its upcoming release. In that report, analysts expect Deckers to post earnings of $2.44 per share. This would mark a year-over-year decline of 3.17%. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 8.13% from the year-ago period.
DECK’s full-year Zacks Consensus Estimates are calling for earnings of $5.49 per share and revenue of $4.87 billion. These results would represent year-over-year changes of +12.96% and +13.64%, respectively.
Any recent changes to analyst estimates for Deckers should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has shifted 0.09% upward. At present, Deckers boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Deckers is currently trading at a Forward P/E ratio of 37. This indicates a premium in contrast to its industry’s Forward P/E of 16.92.
It is also worth noting that DECK currently has a PEG ratio of 2.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Retail – Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.51 based on yesterday’s closing prices.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 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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