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Deckers (DECK) Stock Sinks As Market Gains: What You Should Know

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Deckers (DECK - Free Report) closed at $110.83 in the latest trading session, marking a -0.77% move from the prior day. This move lagged the S&P 500's daily gain of 0.15%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the maker of Ugg footwear had lost 1.46% in the past month. In that same time, the Retail-Wholesale sector gained 0.27%, while the S&P 500 lost 0.21%.

Market participants will be closely following the financial results of Deckers in its upcoming release. The company's earnings per share (EPS) are projected to be $0.56, reflecting a 32.53% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $985.64 million, reflecting a 2.7% rise from the equivalent quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for Deckers. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.12% lower. As of now, Deckers holds a Zacks Rank of #3 (Hold).

In terms of valuation, Deckers is presently being traded at a Forward P/E ratio of 17.3. This denotes a premium relative to the industry's average Forward P/E of 13.25.

Investors should also note that DECK has a PEG ratio of 1.14 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.4 as trading concluded yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 39% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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