Deckers (DECK) closed the most recent trading day at $103.63, moving +2.12% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.94% for the day. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.52%.
Coming into today, shares of the maker of Ugg footwear had lost 20.66% in the past month. In that same time, the Retail-Wholesale sector lost 3.2%, while the S&P 500 gained 1.67%.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company is forecasted to report an EPS of $0.67, showcasing a 10.67% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $899.21 million, indicating a 8.95% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.05 per share and revenue of $5.36 billion, indicating changes of -4.42% and +7.61%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deckers. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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, the Zacks Consensus EPS estimate has moved 6.25% lower. As of now, Deckers holds a Zacks Rank of #4 (Sell).
Investors should also note Deckers's current valuation metrics, including its Forward P/E ratio of 16.76. This expresses no noticeable deviation compared to the average Forward P/E of 16.76 of its industry.
One should further note that DECK currently holds a PEG ratio of 6.16. 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 1.85 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 23% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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