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Zumiez (ZUMZ) Dips More Than Broader Markets: What You Should Know

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Zumiez (ZUMZ - Free Report) closed at $32.09 in the latest trading session, marking a -1.5% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.

Heading into today, shares of the clothing retailer had gained 2.86% over the past month, lagging the Retail-Wholesale sector's gain of 3.2% and outpacing the S&P 500's gain of 2.7% in that time.

Investors will be hoping for strength from ZUMZ as it approaches its next earnings release. In that report, analysts expect ZUMZ to post earnings of $0.59 per share. This would mark year-over-year growth of 7.27%. Meanwhile, our latest consensus estimate is calling for revenue of $260.37 million, up 4.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.16 per share and revenue of $1.02 billion, which would represent changes of +20.67% and +4.45%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ZUMZ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZUMZ is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, ZUMZ is holding a Forward P/E ratio of 15.11. This represents a premium compared to its industry's average Forward P/E of 12.65.

It is also worth noting that ZUMZ currently has a PEG ratio of 1.26. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.4 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ZUMZ in the coming trading sessions, be sure to utilize Zacks.com.


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