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Deckers (DECK) Dips More Than Broader Markets: What You Should Know

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Deckers (DECK - Free Report) closed at $174.37 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.52%.

Coming into today, shares of the maker of Ugg footwear had gained 21.93% in the past month. In that same time, the Consumer Discretionary sector gained 2.34%, while the S&P 500 gained 3.12%.

DECK will be looking to display strength as it nears its next earnings release. In that report, analysts expect DECK to post earnings of -$1.15 per share. This would mark a year-over-year decline of 17.35%. Meanwhile, our latest consensus estimate is calling for revenue of $259.94 million, up 3.73% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.45 per share and revenue of $2.12 billion, which would represent changes of -4.41% and +5.04%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DECK. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.85% higher within the past month. DECK is currently a Zacks Rank #2 (Buy).

Looking at its valuation, DECK is holding a Forward P/E ratio of 20.85. This represents a premium compared to its industry's average Forward P/E of 14.64.

Investors should also note that DECK has a PEG ratio of 1.79 right now. 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 Shoes and Retail Apparel was holding an average PEG ratio of 1.8 at yesterday's closing price.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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