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Shoe Carnival (SCVL) Hits Fresh Highs: Is There Still Room to Run?
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Have you been paying attention to shares of Shoe Carnival (SCVL - Free Report) ? Shares have been on the move with the stock up 34.3% over the past month. SCVL hit a new 52-week high of $33.18 in the previous session. Shoe Carnival has gained 21.7% since the start of the year compared to the 7.8% move for the Retail-Wholesale sector and the -4.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 24, 2018, Shoe Carnival reported EPS of $0.83 versus the Zacks Consensus Estimate of $0.75 while it missed the consensus revenue estimate by 0.91%.
For the current fiscal year, Shoe Carnival is expected to post earnings of $2.03 per share on $1.02 billion in revenues. This represents a 36.24% change in EPS on a -0.12% change in revenues. For the next fiscal year, the company is expected to earn $2.28 per share on $1.02 billion in revenues. This represents a year-over-year change of 12.32% and 0.2%, respectively.
Valuation Metrics
Shoe Carnival may be at a 52-week high right now, but what might the future hold for SCVL? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Shoe Carnival has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 11.4X versus its peer group's average of 9.8X. Additionally, the stock has a PEG ratio of 1.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Shoe Carnival currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Shoe Carnival fits the bill. Thus, it seems as though SCVL shares could have a bit more room to run in the near term.
How Does Shoe Carnival Stack Up to the Competition?
Shares of Shoe Carnival have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Buckle, (BKE - Free Report) , Burberry Group (BURBY - Free Report) , and Urban Outfitters (URBN - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SCVL, even beyond its own solid fundamental situation.
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Shoe Carnival (SCVL) Hits Fresh Highs: Is There Still Room to Run?
Have you been paying attention to shares of Shoe Carnival (SCVL - Free Report) ? Shares have been on the move with the stock up 34.3% over the past month. SCVL hit a new 52-week high of $33.18 in the previous session. Shoe Carnival has gained 21.7% since the start of the year compared to the 7.8% move for the Retail-Wholesale sector and the -4.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 24, 2018, Shoe Carnival reported EPS of $0.83 versus the Zacks Consensus Estimate of $0.75 while it missed the consensus revenue estimate by 0.91%.
For the current fiscal year, Shoe Carnival is expected to post earnings of $2.03 per share on $1.02 billion in revenues. This represents a 36.24% change in EPS on a -0.12% change in revenues. For the next fiscal year, the company is expected to earn $2.28 per share on $1.02 billion in revenues. This represents a year-over-year change of 12.32% and 0.2%, respectively.
Valuation Metrics
Shoe Carnival may be at a 52-week high right now, but what might the future hold for SCVL? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Shoe Carnival has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 11.4X versus its peer group's average of 9.8X. Additionally, the stock has a PEG ratio of 1.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Shoe Carnival, Inc. Price and Consensus
Shoe Carnival, Inc. Price and Consensus | Shoe Carnival, Inc. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Shoe Carnival currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Shoe Carnival fits the bill. Thus, it seems as though SCVL shares could have a bit more room to run in the near term.
How Does Shoe Carnival Stack Up to the Competition?
Shares of Shoe Carnival have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Buckle, (BKE - Free Report) , Burberry Group (BURBY - Free Report) , and Urban Outfitters (URBN - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SCVL, even beyond its own solid fundamental situation.