In the latest trading session, Deckers (DECK) closed at $106.77, marking a -1.62% move from the previous day. This change lagged the S&P 500's 0.12% gain on the day. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.2%.
The maker of Ugg footwear's stock has climbed by 15.4% in the past month, exceeding the Retail-Wholesale sector's gain of 12.69% and the S&P 500's gain of 9.3%.
Investors will be eagerly watching for the performance of Deckers in its upcoming earnings disclosure. In that report, analysts expect Deckers to post earnings of $0.81 per share. This would mark a year-over-year decline of 19%. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 5.9% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.87 per share and a revenue of $5.43 billion, demonstrating changes of +8.53% and +8.89%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Deckers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. Deckers is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Deckers is currently exchanging hands at a Forward P/E ratio of 14.86. Its industry sports an average Forward P/E of 16.35, so one might conclude that Deckers is trading at a discount comparatively.
Also, we should mention that DECK has a PEG ratio of 2.33. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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