Deckers (DECK) closed the most recent trading day at $117.07, moving -1.06% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.77%. Elsewhere, the Dow saw a downswing of 0.95%, while the tech-heavy Nasdaq depreciated by 0.87%.
Coming into today, shares of the maker of Ugg footwear had gained 11.49% in the past month. In that same time, the Retail-Wholesale sector gained 9.54%, while the S&P 500 gained 11.54%.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. On that day, Deckers is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 32.53%. Simultaneously, our latest consensus estimate expects the revenue to be $985.64 million, showing a 2.7% escalation compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for Deckers. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.12% lower. Right now, Deckers possesses a Zacks Rank of #4 (Sell).
In the context of valuation, Deckers is at present trading with a Forward P/E ratio of 18.32. This indicates a premium in contrast to its industry's Forward P/E of 13.78.
Investors should also note that DECK has a PEG ratio of 1.21 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. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.43.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 25% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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