Deckers (DECK) closed the most recent trading day at $103.99, moving +2.78% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.59%.
Shares of the maker of Ugg footwear witnessed a gain of 22.17% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 0.92%, and the S&P 500's loss of 0.21%.
The investment community will be closely monitoring the performance of Deckers in its forthcoming earnings report. The company's upcoming EPS is projected at $2.76, signifying a 8.00% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 2.27% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.41 per share and a revenue of $5.36 billion, demonstrating changes of +1.26% and +7.57%, 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Deckers is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Deckers's current valuation metrics, including its Forward P/E ratio of 15.79. This indicates a discount in contrast to its industry's Forward P/E of 19.45.
Meanwhile, DECK's PEG ratio is currently 4.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 2.15.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.
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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Deckers Outdoor Corporation (DECK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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