Deckers (DECK) closed the most recent trading day at $97.98, moving -2.69% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 2.06% for the day. At the same time, the Dow lost 1.76%, and the tech-heavy Nasdaq lost 2.39%.
Heading into today, shares of the maker of Ugg footwear had lost 1.2% over the past month, lagging the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 1.63%.
Investors will be eagerly watching for the performance of Deckers in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.77, marking a 7.67% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.87 billion, indicating a 2.57% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.41 per share and revenue of $5.37 billion. These totals would mark changes of +1.26% and +7.65%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Deckers. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. At present, Deckers boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Deckers is presently being traded at a Forward P/E ratio of 15.72. This expresses a discount compared to the average Forward P/E of 18.63 of its industry.
One should further note that DECK currently holds a PEG ratio of 4.54. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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