Deckers (DECK) closed at $532.75 in the latest trading session, marking a +0.69% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.18%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the maker of Ugg footwear had lost 4.73% in the past month. In that same time, the Consumer Discretionary sector lost 4.49%, while the S&P 500 lost 1.63%.
Wall Street will be looking for positivity from Deckers as it approaches its next earnings report date. The company is expected to report EPS of $4.41, up 16.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $958.58 million, up 9.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.40 per share and revenue of $3.98 billion. These totals would mark changes of +15.64% and +9.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates 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 company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Deckers is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Deckers is holding a Forward P/E ratio of 23.16. For comparison, its industry has an average Forward P/E of 14.06, which means Deckers is trading at a premium to the group.
It is also worth noting that DECK currently has a PEG ratio of 1.3. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.3 based on yesterday’s closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.
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.
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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