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Here's Why Deckers (DECK) Fell More Than Broader Market
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In the latest trading session, Deckers (DECK - Free Report) closed at $879.38, marking a -1.79% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq gained 0.25%.
Prior to today's trading, shares of the maker of Ugg footwear had gained 6.18% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.02% and the S&P 500's gain of 3.42% in that time.
Market participants will be closely following the financial results of Deckers in its upcoming release. In that report, analysts expect Deckers to post earnings of $7.24 per share. This would mark year-over-year growth of 6.16%. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 9.15% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $31.60 per share and a revenue of $4.78 billion, signifying shifts of +8.37% and +11.5%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Deckers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. Right now, Deckers possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Deckers is presently being traded at a Forward P/E ratio of 28.34. This indicates a premium in contrast to its industry's Forward P/E of 15.98.
Investors should also note that DECK has a PEG ratio of 2.62 right now. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.84 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why Deckers (DECK) Fell More Than Broader Market
In the latest trading session, Deckers (DECK - Free Report) closed at $879.38, marking a -1.79% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq gained 0.25%.
Prior to today's trading, shares of the maker of Ugg footwear had gained 6.18% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.02% and the S&P 500's gain of 3.42% in that time.
Market participants will be closely following the financial results of Deckers in its upcoming release. In that report, analysts expect Deckers to post earnings of $7.24 per share. This would mark year-over-year growth of 6.16%. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 9.15% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $31.60 per share and a revenue of $4.78 billion, signifying shifts of +8.37% and +11.5%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Deckers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. Right now, Deckers possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Deckers is presently being traded at a Forward P/E ratio of 28.34. This indicates a premium in contrast to its industry's Forward P/E of 15.98.
Investors should also note that DECK has a PEG ratio of 2.62 right now. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.84 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.