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Guidance lifts commonly inject positivity into shares, with investors scrambling to get in and ride the momentum. Companies raise their outlooks when business is fruitful, sending a bullish message to shareholders.
And recently, several companies, including Deckers Outdoor (DECK - Free Report) , The Clorox Company (CLX - Free Report) , and Modine Manufacturing (MOD - Free Report) – have raised their outlooks, with shares moving higher following the announcements.
For those interested in recent bullish activity, let’s take a closer look at each.
Deckers Outdoor
Deckers Outdoor, a current Zacks Rank #1 (Buy), is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.
Concerning headline figures, DECK posted a 32% beat relative to the Zacks Consensus EPS estimate and reported sales 8.5% ahead of expectations, reflecting growth rates of 44% and 16%, respectively. Impressively, both earnings and revenue results reflected quarterly records, driven by strength across its UGG and HOKA brands.
The continued consumer momentum has nicely expanded DECK’s top line, as shown below.
Image Source: Zacks Investment Research
Several other notable highlights included operating income growth of 35% and gross margin expansion to 58.7% vs. 53.0% in the year-ago period. Following the results, Deckers upped its FY24 outlook across several metrics, now expecting net sales of $4.15 billion and a gross margin of 54.5%.
Shares may not entice those with a value-conscious approach, with the current 31.7X forward 12-month earnings multiple well above the 20.4X five-year median and the respective Zacks industry average of 15.5X.
Image Source: Zacks Investment Research
The Clorox Company
The Clorox Company is engaged in the production, marketing, and sale of consumer products in the U.S. and international markets. The stock is a Zacks Rank #2 (Buy), with the outlook for its current fiscal year getting a nice boost following its latest set of quarterly results.
The company exceeded the Zacks Consensus EPS estimate by a sizable 100% and reported sales 12% ahead of expectations, representing year-over-year growth rates of 120% and 16%, respectively. Margin expansion helped drive EPS growth, improving to 43.5% from the year-ago mark of 36.2% thanks to cost-saving initiatives.
Clorox’s favorable results across its last two releases have driven shares higher, reflecting the company’s favorable turnaround following a cyberattack in the later months of 2023.
Image Source: Zacks Investment Research
Income investors could be attracted to CLX shares, presently yielding a solid 3.1%. In addition, the company’s 4.3% five-year annualized dividend growth rate reflects a commitment to increasingly rewarding shareholders.
Image Source: Zacks Investment Research
Modine Manufacturing
Modine Manufacturing, a current Zacks Rank #1 (Strong Buy), is a diversified global leader in thermal management technology and solutions. The company’s current fiscal year outlook jumped higher following its set of quarterly results delivered at the end of January.
Image Source: Zacks Investment Research
Concerning headline figures, Modine exceeded the Zacks Consensus EPS estimate by nearly 30% but fell short of sales expectations by 4%. Earnings saw 54% growth, whereas sales were primarily flat from the year-ago period.
The company’s ‘80/20’ strategy aimed at increasing efficiency and margin expansion has continued to be a success, with operating income seeing a year-over-year improvement of 56% and gross margin expanding 530 basis points to 22.7%.
It raised its current year (FY24) outlook thanks to its strategy and rapid sales growth within the data center market, now expecting net sales growth in a band of 4% - 7% and adjusted EBITDA in a range of $305 - $313 million.
Shares jumped following the results, continuing a recent trend of post-earnings bullishness.
Image Source: Zacks Investment Research
Bottom Line
Guidance lifts are among the most positive announcements shareholders can hear, injecting confidence in the long-term picture.
And recently, all three stocks above – Deckers Outdoor (DECK - Free Report) , The Clorox Company (CLX - Free Report) , and Modine Manufacturing (MOD - Free Report) – have raised their outlooks, with shares moving higher following the announcements.
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3 Stocks to Buy Following Guidance Lifts
Guidance lifts commonly inject positivity into shares, with investors scrambling to get in and ride the momentum. Companies raise their outlooks when business is fruitful, sending a bullish message to shareholders.
And recently, several companies, including Deckers Outdoor (DECK - Free Report) , The Clorox Company (CLX - Free Report) , and Modine Manufacturing (MOD - Free Report) – have raised their outlooks, with shares moving higher following the announcements.
For those interested in recent bullish activity, let’s take a closer look at each.
Deckers Outdoor
Deckers Outdoor, a current Zacks Rank #1 (Buy), is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.
Concerning headline figures, DECK posted a 32% beat relative to the Zacks Consensus EPS estimate and reported sales 8.5% ahead of expectations, reflecting growth rates of 44% and 16%, respectively. Impressively, both earnings and revenue results reflected quarterly records, driven by strength across its UGG and HOKA brands.
The continued consumer momentum has nicely expanded DECK’s top line, as shown below.
Image Source: Zacks Investment Research
Several other notable highlights included operating income growth of 35% and gross margin expansion to 58.7% vs. 53.0% in the year-ago period. Following the results, Deckers upped its FY24 outlook across several metrics, now expecting net sales of $4.15 billion and a gross margin of 54.5%.
Shares may not entice those with a value-conscious approach, with the current 31.7X forward 12-month earnings multiple well above the 20.4X five-year median and the respective Zacks industry average of 15.5X.
Image Source: Zacks Investment Research
The Clorox Company
The Clorox Company is engaged in the production, marketing, and sale of consumer products in the U.S. and international markets. The stock is a Zacks Rank #2 (Buy), with the outlook for its current fiscal year getting a nice boost following its latest set of quarterly results.
The company exceeded the Zacks Consensus EPS estimate by a sizable 100% and reported sales 12% ahead of expectations, representing year-over-year growth rates of 120% and 16%, respectively. Margin expansion helped drive EPS growth, improving to 43.5% from the year-ago mark of 36.2% thanks to cost-saving initiatives.
Clorox’s favorable results across its last two releases have driven shares higher, reflecting the company’s favorable turnaround following a cyberattack in the later months of 2023.
Image Source: Zacks Investment Research
Income investors could be attracted to CLX shares, presently yielding a solid 3.1%. In addition, the company’s 4.3% five-year annualized dividend growth rate reflects a commitment to increasingly rewarding shareholders.
Image Source: Zacks Investment Research
Modine Manufacturing
Modine Manufacturing, a current Zacks Rank #1 (Strong Buy), is a diversified global leader in thermal management technology and solutions. The company’s current fiscal year outlook jumped higher following its set of quarterly results delivered at the end of January.
Image Source: Zacks Investment Research
Concerning headline figures, Modine exceeded the Zacks Consensus EPS estimate by nearly 30% but fell short of sales expectations by 4%. Earnings saw 54% growth, whereas sales were primarily flat from the year-ago period.
The company’s ‘80/20’ strategy aimed at increasing efficiency and margin expansion has continued to be a success, with operating income seeing a year-over-year improvement of 56% and gross margin expanding 530 basis points to 22.7%.
It raised its current year (FY24) outlook thanks to its strategy and rapid sales growth within the data center market, now expecting net sales growth in a band of 4% - 7% and adjusted EBITDA in a range of $305 - $313 million.
Shares jumped following the results, continuing a recent trend of post-earnings bullishness.
Image Source: Zacks Investment Research
Bottom Line
Guidance lifts are among the most positive announcements shareholders can hear, injecting confidence in the long-term picture.
And recently, all three stocks above – Deckers Outdoor (DECK - Free Report) , The Clorox Company (CLX - Free Report) , and Modine Manufacturing (MOD - Free Report) – have raised their outlooks, with shares moving higher following the announcements.