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Deckers (DECK) Gains As Market Dips: What You Should Know

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Deckers (DECK - Free Report) closed at $359.03 in the latest trading session, marking a +0.13% move from the prior day. This change outpaced the S&P 500's 0.1% loss on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the maker of Ugg footwear had lost 13.64% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.14% and the S&P 500's gain of 4.4% in that time.

Deckers will be looking to display strength as it nears its next earnings release. In that report, analysts expect Deckers to post earnings of $8.25 per share. This would mark a year-over-year decline of 8.23%. Meanwhile, our latest consensus estimate is calling for revenue of $1.18 billion, up 9.33% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.08 per share and revenue of $3.05 billion. These totals would mark changes of +11.95% and +19.82%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Deckers. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Deckers is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Deckers currently has a Forward P/E ratio of 23.77. Its industry sports an average Forward P/E of 21.01, so we one might conclude that Deckers is trading at a premium comparatively.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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