In This Article:
In the latest trading session, Deckers (DECK) closed at $207.11, marking a -1.11% move from the previous day. The stock performed in line with S&P 500. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.
Heading into today, shares of the maker of Ugg footwear had gained 9.21% over the past month, outpacing the Retail-Wholesale sector's gain of 1.42% and the S&P 500's gain of 0.4% in that time.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company's earnings per share (EPS) are projected to be $2.44, reflecting a 3.17% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.69 billion, indicating an 8.13% upward movement from the same quarter last year.
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.
Investors should also note any recent changes to analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.09% increase. Deckers is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Deckers has a Forward P/E ratio of 38.15 right now. Its industry sports an average Forward P/E of 18.05, so one might conclude that Deckers is trading at a premium comparatively.
Meanwhile, DECK's PEG ratio is currently 2.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.54.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.