In the latest trading session, Deckers (DECK) closed at $104.26, marking a +2% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Coming into today, shares of the maker of Ugg footwear had lost 8.06% in the past month. In that same time, the Retail-Wholesale sector gained 0.24%, while the S&P 500 gained 1.13%.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company is expected to report EPS of $0.92, down 1.08% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.02 billion, reflecting a 5.43% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.45 per share and revenue of $5.91 billion, which would represent changes of +6.13% and +8.05%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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 business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.18% rise in the Zacks Consensus EPS estimate. Deckers is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Deckers is holding a Forward P/E ratio of 13.72. Its industry sports an average Forward P/E of 16.12, so one might conclude that Deckers is trading at a discount comparatively.
One should further note that DECK currently holds a PEG ratio of 2.02. 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 industry had an average PEG ratio of 1.18 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).