Deckers (DECK) closed the most recent trading day at $99.29, moving -1.96% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Shares of the maker of Ugg footwear witnessed a loss of 8.61% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 5.08%, and the S&P 500's loss of 1.82%.
Analysts and investors alike will be keeping a close eye on the performance of Deckers in its upcoming earnings disclosure. In that report, analysts expect Deckers to post earnings of $0.92 per share. This would mark a year-over-year decline of 1.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 5.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.45 per share and a revenue of $5.91 billion, demonstrating changes of +6.13% and +8.05%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Deckers. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 moved 0.44% higher. Deckers presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Deckers is presently trading at a Forward P/E ratio of 13.6. For comparison, its industry has an average Forward P/E of 16.28, which means Deckers is trading at a discount to the group.
Meanwhile, DECK's PEG ratio is currently 2. 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 1.24 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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