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Canada Goose Holdings (GOOS) Hit Fresh Highs: Is There Still Room to Run?
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Have you been paying attention to shares of Canada Goose Holdings (GOOS - Free Report) ? Shares have been on the move with the stock up 60.2% over the past month. GOOS hit a new 52-week-high of $68.75 in the previous session. Canada Goose Holdings has gained 102.8% since the start of the year compared to the 14.5% move for the Retail-Wholesale sector and the 7.6% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus EPS estimate in each of the last four quarters. In its last earnings report on June 15, 2018, Canada Goose Holdings reported EPS of $0.07 vs. the Zacks Consensus of $-0.08 while it beat the consensus revenue estimate by 62.74%.
For the current fiscal year, Canada Goose Holdings is expected to post earnings of $0.81 per share on $542.61 million in revenues. This represents a 22.73% change in EPS on a 16.3% change in revenues. For the next fiscal year, the company is expected to earn $1.01 per share on $654.45 million in revenues. This represents a year-over-year change of 24.38% and 20.61%, respectively.
Valuation Metrics
Though GOOS has recently hit a 52-week-high, what is next for Canada Goose Holdings? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Canada Goose Holdings has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 78.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 82.3X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 3.1. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Canada Goose Holdings currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Canada Goose Holdings passes the test. Thus, it seems as though GOOS shares could have potential in the weeks and months to come.
How Does Canada Goose Holdings Stack Up to the Competition?
Shares of Canada Goose Holdings have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Shoe Carnival (SCVL - Free Report) , Urban Outfitters (URBN - Free Report) , and Kering SA (PPRUY - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Retail-Apparel and Shoes industry is in the top 23% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GOOS, even beyond its own solid fundamental situation.
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Canada Goose Holdings (GOOS) Hit Fresh Highs: Is There Still Room to Run?
Have you been paying attention to shares of Canada Goose Holdings (GOOS - Free Report) ? Shares have been on the move with the stock up 60.2% over the past month. GOOS hit a new 52-week-high of $68.75 in the previous session. Canada Goose Holdings has gained 102.8% since the start of the year compared to the 14.5% move for the Retail-Wholesale sector and the 7.6% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus EPS estimate in each of the last four quarters. In its last earnings report on June 15, 2018, Canada Goose Holdings reported EPS of $0.07 vs. the Zacks Consensus of $-0.08 while it beat the consensus revenue estimate by 62.74%.
For the current fiscal year, Canada Goose Holdings is expected to post earnings of $0.81 per share on $542.61 million in revenues. This represents a 22.73% change in EPS on a 16.3% change in revenues. For the next fiscal year, the company is expected to earn $1.01 per share on $654.45 million in revenues. This represents a year-over-year change of 24.38% and 20.61%, respectively.
Valuation Metrics
Though GOOS has recently hit a 52-week-high, what is next for Canada Goose Holdings? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Canada Goose Holdings has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 78.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 82.3X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 3.1. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Canada Goose Holdings currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Canada Goose Holdings passes the test. Thus, it seems as though GOOS shares could have potential in the weeks and months to come.
How Does Canada Goose Holdings Stack Up to the Competition?
Shares of Canada Goose Holdings have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Shoe Carnival (SCVL - Free Report) , Urban Outfitters (URBN - Free Report) , and Kering SA (PPRUY - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Retail-Apparel and Shoes industry is in the top 23% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GOOS, even beyond its own solid fundamental situation.