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Buckle (BKE) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Buckle (BKE - Free Report) closed at $43.09, marking a +1.94% move from the previous day. This move outpaced the S&P 500's daily gain of 0.82%.

Prior to today's trading, shares of the teen clothing retailer had lost 14.5% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.61% and the S&P 500's gain of 0.89% in that time.

Investors will be hoping for strength from BKE as it approaches its next earnings release. The company is expected to report EPS of $0.56, down 21.13% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $226 million, up 4.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.75 per share and revenue of $1.11 billion, which would represent changes of +40.98% and +22.88%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BKE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. BKE currently has a Zacks Rank of #3 (Hold).

Investors should also note BKE's current valuation metrics, including its Forward P/E ratio of 11.27. This valuation marks a discount compared to its industry's average Forward P/E of 16.39.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% 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.

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