Deckers (DECK) ended the recent trading session at $119.61, demonstrating a +1.24% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.64%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.15%.
Shares of the maker of Ugg footwear witnessed a gain of 11.27% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 1.08%, and the S&P 500's gain of 1.91%.
The upcoming earnings release of Deckers will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.56, reflecting a 1.89% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.41 billion, showing a 7.67% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.29 per share and revenue of $5.43 billion, which would represent changes of -0.63% and +9.01%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Deckers. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. Right now, Deckers possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Deckers is currently exchanging hands at a Forward P/E ratio of 18.8. Its industry sports an average Forward P/E of 18.45, so one might conclude that Deckers is trading at a premium comparatively.
It is also worth noting that DECK currently has a PEG ratio of 4.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail – Apparel and Shoes industry had an average PEG ratio of 2.1.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 33% of all 250+ industries.
