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Deckers (DECK) Dips More Than Broader Market: What You Should Know

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Deckers (DECK - Free Report) closed the latest trading day at $850.67, indicating a -1.31% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.21%, and the technology-centric Nasdaq increased by 0.29%.

The maker of Ugg footwear's stock has climbed by 5.85% in the past month, exceeding the Retail-Wholesale sector's gain of 1.42% and the S&P 500's gain of 1.29%.

The investment community will be closely monitoring the performance of Deckers in its forthcoming earnings report. The company's upcoming EPS is projected at $2.68, signifying a 22.54% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $876.05 million, showing a 10.67% escalation compared to the year-ago quarter.

Investors should also pay attention to any latest changes in analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Right now, Deckers possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Deckers is currently exchanging hands at a Forward P/E ratio of 28.97. For comparison, its industry has an average Forward P/E of 15.64, which means Deckers is trading at a premium to the group.

Also, we should mention that DECK has a PEG ratio of 1.53. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.35 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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