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Guess (GES) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Guess (GES - Free Report) ending at $28.09, denoting a -1.78% adjustment from its last day's close. This change lagged the S&P 500's 0.74% gain on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 1.68%.

The the stock of clothing company has risen by 11.5% in the past month, leading the Consumer Discretionary sector's loss of 2.3% and the S&P 500's gain of 0.8%.

The investment community will be paying close attention to the earnings performance of Guess in its upcoming release. On that day, Guess is projected to report earnings of -$0.35 per share, which would represent a year-over-year decline of 400%. Meanwhile, our latest consensus estimate is calling for revenue of $578.33 million, up 1.5% from the prior-year quarter.

GES's full-year Zacks Consensus Estimates are calling for earnings of $2.93 per share and revenue of $3.09 billion. These results would represent year-over-year changes of -6.69% and +11.39%, respectively.

Any recent changes to analyst estimates for Guess should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. Guess currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Guess is holding a Forward P/E ratio of 9.75. For comparison, its industry has an average Forward P/E of 11.47, which means Guess is trading at a discount to the group.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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