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Steven Madden (SHOO) Hits 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of Steven Madden (SHOO - Free Report) ? Shares have been on the move with the stock up 8.4% over the past month. The stock hit a new 52-week high of $46.35 in the previous session. Steven Madden has gained 29.2% since the start of the year compared to the -5.2% move for the Zacks Consumer Discretionary sector and the 17.2% return for the Zacks Shoes and Retail Apparel industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 28, 2021, Steven Madden reported EPS of $0.48 versus consensus estimate of $0.3.
For the current fiscal year, Steven Madden is expected to post earnings of $2.1 per share on $1.76 billion in revenues. This represents a 228.13% change in EPS on a 46.45% change in revenues. For the next fiscal year, the company is expected to earn $2.51 per share on $1.94 billion in revenues. This represents a year-over-year change of 19.68% and 10.09%, respectively.
Valuation Metrics
Steven Madden may be at a 52-week high right now, but what might the future hold for the stock? 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.
Steven Madden has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 25.3X versus its peer group's average of 24.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Steven Madden currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Steven Madden fits the bill. Thus, it seems as though Steven Madden shares could have a bit more room to run in the near term.
How Does Steven Madden Stack Up to the Competition?
Shares of Steven Madden have been rising, 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 solid potential picks, including Caleres (CAL - Free Report) , Carter's (CRI - Free Report) , and Ralph Lauren (RL - 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.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Steven Madden. Still, the fundamentals for Steven Madden are promising, and it still has potential despite being at a 52-week high.
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Steven Madden (SHOO) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Steven Madden (SHOO - Free Report) ? Shares have been on the move with the stock up 8.4% over the past month. The stock hit a new 52-week high of $46.35 in the previous session. Steven Madden has gained 29.2% since the start of the year compared to the -5.2% move for the Zacks Consumer Discretionary sector and the 17.2% return for the Zacks Shoes and Retail Apparel industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 28, 2021, Steven Madden reported EPS of $0.48 versus consensus estimate of $0.3.
For the current fiscal year, Steven Madden is expected to post earnings of $2.1 per share on $1.76 billion in revenues. This represents a 228.13% change in EPS on a 46.45% change in revenues. For the next fiscal year, the company is expected to earn $2.51 per share on $1.94 billion in revenues. This represents a year-over-year change of 19.68% and 10.09%, respectively.
Valuation Metrics
Steven Madden may be at a 52-week high right now, but what might the future hold for the stock? 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.
Steven Madden has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 25.3X versus its peer group's average of 24.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Steven Madden currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Steven Madden fits the bill. Thus, it seems as though Steven Madden shares could have a bit more room to run in the near term.
How Does Steven Madden Stack Up to the Competition?
Shares of Steven Madden have been rising, 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 solid potential picks, including Caleres (CAL - Free Report) , Carter's (CRI - Free Report) , and Ralph Lauren (RL - 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.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Steven Madden. Still, the fundamentals for Steven Madden are promising, and it still has potential despite being at a 52-week high.