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Deckers (DECK) Outperforms Broader Market: What You Need to Know

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Deckers (DECK - Free Report) closed the most recent trading day at $161.94, moving +1.96% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.

The maker of Ugg footwear's shares have seen an increase of 6.59% over the last month, not keeping up with the Retail-Wholesale sector's gain of 7.36% and outstripping the S&P 500's gain of 5.41%.

The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company's earnings per share (EPS) are projected to be $1.22, reflecting a 7.02% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 9.38% from the prior-year quarter.

DECK's full-year Zacks Consensus Estimates are calling for earnings of $5.22 per share and revenue of $4.79 billion. These results would represent year-over-year changes of +7.41% and +11.7%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Deckers. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.89% lower. Deckers presently features a Zacks Rank of #3 (Hold).

Investors should also note Deckers's current valuation metrics, including its Forward P/E ratio of 30.43. This represents a premium compared to its industry's average Forward P/E of 16.65.

One should further note that DECK currently holds a PEG ratio of 2.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.91.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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