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Deckers (DECK) Stock Slides as Market Rises: Facts to Know Before You Trade

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Deckers (DECK - Free Report) closed the most recent trading day at $117.17, moving -2.68% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.21%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 0.45%.

Prior to today's trading, shares of the maker of Ugg footwear had gained 18.41% outpaced the Retail-Wholesale sector's gain of 5.92% and the S&P 500's gain of 3.07%.

Analysts and investors alike will be keeping a close eye on the performance of Deckers in its upcoming earnings disclosure. On that day, Deckers is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 1.26%. Meanwhile, our latest consensus estimate is calling for revenue of $1.41 billion, up 7.67% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.33 per share and a revenue of $5.43 billion, indicating changes of 0% and +9.01%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Deckers. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.42% increase. Deckers is currently a Zacks Rank #3 (Hold).

Looking at valuation, Deckers is presently trading at a Forward P/E ratio of 19.03. This valuation marks a discount compared to its industry average Forward P/E of 19.06.

It is also worth noting that DECK currently has a PEG ratio of 4.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 2.26 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 41% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DECK in the coming trading sessions, be sure to utilize Zacks.com.


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