In This Article:
In the latest market close, Deckers (DECK) reached $109.05, with a -0.53% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.81%. At the same time, the Dow added 1.56%, and the tech-heavy Nasdaq gained 2.06%.
Prior to today's trading, shares of the maker of Ugg footwear had lost 6.33% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.27% and the S&P 500's loss of 6.14% in that time.
The upcoming earnings release of Deckers will be of great interest to investors. The company is predicted to post an EPS of $0.55, indicating a 33.73% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $992.79 million, indicating a 3.44% growth compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for Deckers. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Deckers holds a Zacks Rank of #2 (Buy).
In terms of valuation, Deckers is presently being traded at a Forward P/E ratio of 16.62. This indicates a premium in contrast to its industry's Forward P/E of 12.51.
We can additionally observe that DECK currently boasts a PEG ratio of 1.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.24.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 44% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.