Deckers (DECK) Gains But Lags Market: What You Should Know
Deckers (DECK) ended the recent trading session at $154.40, demonstrating a +0.12% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.56%.
Prior to today's trading, shares of the maker of Ugg footwear had lost 2.09% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.28% and the S&P 500's gain of 1.65% in that time.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company's upcoming EPS is projected at $1.21, signifying a 6.14% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.19 billion, up 9.15% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.20 per share and a revenue of $4.78 billion, indicating changes of +7% and +11.5%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deckers. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.22% lower. Right now, Deckers possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Deckers is presently trading at a Forward P/E ratio of 29.65. This valuation marks a premium compared to its industry's average Forward P/E of 16.86.
Investors should also note that DECK has a PEG ratio of 2.74 right now. 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. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.64.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report