Deckers (DECK) closed the most recent trading day at $78.59, moving -1.55% from the previous trading session. The stock’s change was less than the S&P 500’s daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
The stock of maker of Ugg footwear has fallen by 10.04% in the past month, lagging the Retail-Wholesale sector’s loss of 3.45% and the S&P 500’s gain of 1.26%.
Investors will be eagerly watching for the performance of Deckers in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.82, indicating constancy compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.51 billion, indicating a 5.58% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.5 per share and revenue of $5.9 billion, which would represent changes of +6.84% and +7.88%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Deckers. 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Deckers possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Deckers is currently trading at a Forward P/E ratio of 10.64. This valuation marks a discount compared to its industry average Forward P/E of 14.21.
One should further note that DECK currently holds a PEG ratio of 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Retail – Apparel and Shoes was holding an average PEG ratio of 1.17 at yesterday’s closing price.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 100, putting it in the top 41% of all 250+ industries.
