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Revolve Group (RVLV) Dips More Than Broader Markets: What You Should Know

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Revolve Group (RVLV - Free Report) closed the most recent trading day at $56.04, moving -1.23% from the previous trading session. This change lagged the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Heading into today, shares of the online women's fashion retailer had lost 18.43% over the past month, lagging the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 4.82% in that time.

Wall Street will be looking for positivity from Revolve Group as it approaches its next earnings report date. The company is expected to report EPS of $0.18, up 5.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $219.43 million, up 55.9% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.13 per share and revenue of $872.15 million. These totals would mark changes of +61.43% and +50.2%, respectively, from last year.

Any recent changes to analyst estimates for Revolve Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Revolve Group is currently a Zacks Rank #3 (Hold).

Digging into valuation, Revolve Group currently has a Forward P/E ratio of 50.25. Its industry sports an average Forward P/E of 51.98, so we one might conclude that Revolve Group is trading at a discount comparatively.

Meanwhile, RVLV's PEG ratio is currently 2.08. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% 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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