Back to top

Image: Bigstock

Zumiez (ZUMZ) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Zumiez (ZUMZ - Free Report) closed the most recent trading day at $29.88, moving -1.94% from the previous trading session. This change lagged the S&P 500's 0.05% gain on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.11%.

Coming into today, shares of the clothing retailer had lost 4.75% in the past month. In that same time, the Retail-Wholesale sector gained 1.18%, while the S&P 500 gained 4.32%.

Investors will be hoping for strength from ZUMZ as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $260.37 million, up 4.65% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for ZUMZ. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. ZUMZ is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ZUMZ is holding a Forward P/E ratio of 14.13. This valuation marks a premium compared to its industry's average Forward P/E of 13.42.

It is also worth noting that ZUMZ currently has a PEG ratio of 1.18. 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 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 42, putting it in the top 17% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Zumiez Inc. (ZUMZ) - free report >>

Published in