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Deckers (DECK) Registers a Bigger Fall Than the Market: Important Facts to Note

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Deckers (DECK - Free Report) closed the most recent trading day at $105.52, moving -1.63% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.

Prior to today's trading, shares of the maker of Ugg footwear had lost 3.47% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.26% and the S&P 500's gain of 6.43% in that time.

The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. It is anticipated that the company will report an EPS of $0.69, marking an 8% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $899.01 million, indicating an 8.92% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.12 per share and revenue of $5.37 billion. These totals would mark changes of -3.32% and +7.64%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Deckers. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.3% decrease. Deckers is currently a Zacks Rank #4 (Sell).

Looking at valuation, Deckers is presently trading at a Forward P/E ratio of 17.54. This signifies a premium in comparison to the average Forward P/E of 17.05 for its industry.

It's also important to note that DECK currently trades at a PEG ratio of 6.45. 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. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.93.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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