Deckers (DECK) ended the recent trading session at $161.85, demonstrating a +0.7% swing from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily loss of 0.76%. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 1.01%.
Heading into today, shares of the maker of Ugg footwear had gained 2.85% over the past month, lagging the Retail-Wholesale sector’s gain of 3.42% and the S&P 500’s gain of 4.31% in that time.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company is slated to reveal its earnings on October 24, 2024. The company's earnings per share (EPS) are projected to be $1.22, reflecting a 7.02% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.2 billion, reflecting a 9.55% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.22 per share and a revenue of $4.79 billion, demonstrating changes of +7.41% and +11.75%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Deckers. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 has moved 0.85% lower. Deckers currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Deckers is currently trading at a Forward P/E ratio of 30.78. This signifies a premium in comparison to the average Forward P/E of 15.94 for its industry.
It is also worth noting that DECK currently has a PEG ratio of 2.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.94 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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