Deckers (DECK) closed the most recent trading day at $101.21, moving +1.51% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.35%. Elsewhere, the Dow saw a downswing of 0.45%, while the tech-heavy Nasdaq depreciated by 0.14%.
Shares of the maker of Ugg footwear have appreciated by 21.93% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 1.73%, and the S&P 500's gain of 1.2%.
Market participants will be closely following the financial results of Deckers in its upcoming release. The company is forecasted to report an EPS of $2.76, showcasing a 8% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.87 billion, indicating a 2.27% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.41 per share and revenue of $5.36 billion, indicating changes of +1.26% and +7.57%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deckers. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.16% higher. Deckers is currently a Zacks Rank #3 (Hold).
With respect to valuation, Deckers is currently being traded at a Forward P/E ratio of 15.56. This signifies a discount in comparison to the average Forward P/E of 19.82 for its industry.
Investors should also note that DECK has a PEG ratio of 4.5 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 2.23.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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