In the latest close session, Deckers (DECK) was down 1.08% at $103.07. The stock fell short of the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.
Shares of the maker of Ugg footwear have depreciated by 1.25% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.65%, and the S&P 500's gain of 4.27%.
Market participants will be closely following the financial results of Deckers in its upcoming release. The company's earnings per share (EPS) are projected to be $0.67, reflecting a 10.67% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $899.21 million, indicating a 8.95% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.05 per share and a revenue of $5.36 billion, demonstrating changes of -4.42% and +7.61%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1% lower. Right now, Deckers possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Deckers has a Forward P/E ratio of 17.21 right now. This represents a discount compared to its industry average Forward P/E of 17.25.
We can additionally observe that DECK currently boasts a PEG ratio of 6.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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