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Canada Goose (GOOS) Dips More Than Broader Market: What You Should Know

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Canada Goose (GOOS - Free Report) ended the recent trading session at $8.39, demonstrating a -1.41% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.12%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 2.04%.

The high-end coat maker's shares have seen a decrease of 21.06% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.39% and the S&P 500's loss of 2.91%.

Market participants will be closely following the financial results of Canada Goose in its upcoming release. In that report, analysts expect Canada Goose to post earnings of $0.16 per share. This would mark year-over-year growth of 14.29%. Meanwhile, the latest consensus estimate predicts the revenue to be $255.62 million, indicating a 3.74% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.71 per share and a revenue of $926.76 million, representing changes of -2.74% and -6.03%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Canada Goose. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Canada Goose currently has a Zacks Rank of #4 (Sell).

From a valuation perspective, Canada Goose is currently exchanging hands at a Forward P/E ratio of 12.07. Its industry sports an average Forward P/E of 15.08, so one might conclude that Canada Goose is trading at a discount comparatively.

We can also see that GOOS currently has a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.45 at the close of the market yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 31% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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