Deckers (DECK) closed the latest trading day at $702.81, indicating a +0.71% change from the previous session’s end. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
Prior to today’s trading, shares of the maker of Ugg footwear had gained 13.39% over the past month. This has outpaced the Retail-Wholesale sector’s gain of 4.42% and the S&P 500’s gain of 5.21% in that time.
The upcoming earnings release of Deckers will be of great interest to investors. The company is expected to report EPS of $10.90, up 4.01% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.4 billion, up 4.19% from the year-ago period.
DECK’s full-year Zacks Consensus Estimates are calling for earnings of $23.49 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +21.27% and +11.57%, respectively.
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. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.41% increase. At present, Deckers boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Deckers is presently trading at a Forward P/E ratio of 29.7. This signifies a premium in comparison to the average Forward P/E of 15.16 for its industry.
One should further note that DECK currently holds a PEG ratio of 1.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Retail – Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.55 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 141, this industry ranks in the bottom 45% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DECK in the coming trading sessions, be sure to utilize Zacks.com.
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