Deckers (DECK) closed at $105.83 in the latest trading session, marking a -4.85% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.5%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%.
The maker of Ugg footwear's shares have seen a decrease of 4.71% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.66% and the S&P 500's gain of 2.74%.
The upcoming earnings release of Deckers will be of great interest to investors. In that report, analysts expect Deckers to post earnings of $1.57 per share. This would mark a year-over-year decline of 1.26%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.41 billion, indicating a 7.67% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.33 per share and revenue of $5.43 billion, which would represent changes of 0% and +9.01%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Deckers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.66% higher. As of now, Deckers holds a Zacks Rank of #2 (Buy).
In terms of valuation, Deckers is currently trading at a Forward P/E ratio of 17.58. Its industry sports an average Forward P/E of 17.6, so one might conclude that Deckers is trading at a discount comparatively.
One should further note that DECK currently holds a PEG ratio of 4.2. 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 40% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Deckers Outdoor Corporation (DECK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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