Deckers (DECK) closed at $107.86 in the latest trading session, marking a -1.74% move from the prior day. This change lagged the S&P 500's 0.11% loss on the day. On the other hand, the Dow registered a loss of 0.56%, and the technology-centric Nasdaq increased by 0.35%.
The stock of maker of Ugg footwear has risen by 9.02% in the past month, leading the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 0.51%.
The investment community will be closely monitoring the performance of Deckers in its forthcoming earnings report. The company is predicted to post an EPS of $0.81, indicating a 19% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 5.9% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.87 per share and revenue of $5.43 billion, which would represent changes of +8.53% and +8.89%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained steady. Deckers is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Deckers is presently being traded at a Forward P/E ratio of 15.03. This signifies a discount in comparison to the average Forward P/E of 16.34 for its industry.
One should further note that DECK currently holds a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.55.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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