Deckers (DECK) ended the recent trading session at $108.10, demonstrating a +1.23% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
Shares of the maker of Ugg footwear witnessed a gain of 7.11% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 1.59%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Deckers in its upcoming earnings disclosure. On that day, Deckers is projected to report earnings of $2.76 per share, which would represent a year-over-year decline of 8%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.87 billion, indicating a 2.27% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.4 per share and revenue of $5.36 billion. These totals would mark changes of +1.11% and +7.57%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Deckers. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been a 0.06% fall in the Zacks Consensus EPS estimate. Deckers is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Deckers's current valuation metrics, including its Forward P/E ratio of 16.68. This indicates a discount in contrast to its industry's Forward P/E of 19.8.
We can additionally observe that DECK currently boasts a PEG ratio of 4.82. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.79 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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