In the latest trading session, Deckers (DECK) closed at $101.91, marking a +2.45% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.52%.
The stock of maker of Ugg footwear has risen by 16.84% in the past month, leading the Retail-Wholesale sector's gain of 4.11% and the S&P 500's gain of 3%.
Investors will be eagerly watching for the performance of Deckers in its upcoming earnings disclosure. The company is expected to report EPS of $2.76, down 8% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.87 billion, indicating a 2.27% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.41 per share and a revenue of $5.36 billion, representing changes of +1.26% and +7.57%, respectively, from the prior year.
Any recent changes to analyst estimates for Deckers should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Deckers holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Deckers is currently exchanging hands at a Forward P/E ratio of 15.53. This represents a discount compared to its industry average Forward P/E of 20.06.
It is also worth noting that DECK currently has a PEG ratio of 4.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 2.14 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons 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.
To follow DECK in the coming trading sessions, be sure to utilize Zacks.com.
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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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