In the latest trading session, Deckers (DECK) closed at $102.22, marking a +1.77% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 1.43%.
Shares of the maker of Ugg footwear have depreciated by 0.6% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.9%, and the S&P 500's gain of 3.92%.
Market participants will be closely following the financial results of Deckers in its upcoming release. The company is expected to report EPS of $0.67, down 10.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $899.21 million, up 8.95% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.05 per share and a revenue of $5.36 billion, signifying shifts of -4.42% and +7.61%, respectively, from the last year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.67% downward. Deckers is currently a Zacks Rank #4 (Sell).
With respect to valuation, Deckers is currently being traded at a Forward P/E ratio of 16.59. This denotes a discount relative to the industry average Forward P/E of 16.98.
It's also important to note that DECK currently trades at a PEG ratio of 6.1. 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. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.91.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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