In the latest trading session, Canada Goose (GOOS) closed at $13.01, marking a -3.63% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.4% for the day. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.66%.
The stock of high-end coat maker has fallen by 4.46% in the past month, lagging the Retail-Wholesale sector's loss of 3.61% and the S&P 500's gain of 1.02%.
The upcoming earnings release of Canada Goose will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.05, reflecting a 225% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $208.8 million, indicating a 6.36% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.99 per share and a revenue of $1.05 billion, indicating changes of +23.75% and +8.22%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Canada Goose. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Canada Goose is currently a Zacks Rank #3 (Hold).
In terms of valuation, Canada Goose is presently being traded at a Forward P/E ratio of 13.71. This denotes a discount relative to the industry average Forward P/E of 17.6.
One should further note that GOOS currently holds a PEG ratio of 1.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 2.42.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% 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.
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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Canada Goose Holdings Inc. (GOOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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