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

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In the latest trading session, Zumiez (ZUMZ - Free Report) closed at $30, marking a +1.52% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the clothing retailer had lost 9.3% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.37% and the S&P 500's gain of 3.89% in that time.

Wall Street will be looking for positivity from ZUMZ as it approaches its next earnings report date. This is expected to be December 5, 2019. The company is expected to report EPS of $0.59, up 7.27% from the prior-year quarter. 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.

Any recent changes to analyst estimates for ZUMZ should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZUMZ is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ZUMZ is holding a Forward P/E ratio of 13.7. This represents a premium compared to its industry's average Forward P/E of 13.32.

Also, we should mention that ZUMZ has a PEG ratio of 1.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.44 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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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