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Zumiez (ZUMZ) Dips More Than Broader Markets: What You Should Know

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Zumiez (ZUMZ - Free Report) closed at $30.66 in the latest trading session, marking a -0.58% move from the prior day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the clothing retailer had gained 1.11% in the past month. In that same time, the Retail-Wholesale sector gained 6.5%, while the S&P 500 gained 7.08%.

ZUMZ will be looking to display strength as it nears its next earnings release. On that day, ZUMZ is projected to report earnings of $0.59 per share, which would represent year-over-year growth of 7.27%. Meanwhile, our latest consensus estimate is calling for revenue of $260.37 million, up 4.65% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.16 per share and revenue of $1.02 billion. These totals would mark changes of +20.67% and +4.45%, respectively, from last year.

Any recent changes to analyst estimates for ZUMZ should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ZUMZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that ZUMZ has a Forward P/E ratio of 14.3 right now. Its industry sports an average Forward P/E of 13.26, so we one might conclude that ZUMZ is trading at a premium comparatively.

Investors should also note that ZUMZ has a PEG ratio of 1.19 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. ZUMZ's industry had an average PEG ratio of 1.4 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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