The Zacks Analyst Blog Highlights: Deckers Outdoor, Skechers USA, Rocky Brands and Caleres - Press Releases
For Immediate Release
Chicago, IL – June 19, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Deckers Outdoor Corp. (DECK), Skechers USA Inc. (SKX), Rocky Brands, Inc. (RCKY) and Caleres, Inc. (CAL).
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Here are highlights from Thursday’s Analyst Blog:
3 Footwear Stocks Running Ahead of Deckers
Deckers Outdoor Corp. (DECK) made a grand exit from fiscal 2015 in terms of actual numbers. Still, a subdued outlook for the first quarter of fiscal 2016 troubled the investors of this designer, producer and brand manager of footwear and accessories.
The company delivered earnings of 4 cents per share in the final quarter of fiscal 2015 that fared better than the Zacks Consensus Estimate of a breakeven as well as a loss of 8 cents in the year-ago quarter. The better-than-expected bottom line was backed by higher net sales, partially offset by a subdued gross margin. Net sales grew 15.6% and also came ahead of analysts’ expectations.
However, management’s projection of a wider loss in the first quarter compared with analysts’ expectations and the year-ago quarter figure, makes us cautious on the stock. Deckers now projects loss per share of about $1.52 on both a constant currency and reported basis compared with loss per share of $1.07 in the year-ago period. The company also projects revenues increase only marginally on a constant currency basis and remain flat on a reported basis.
The dismal outlook triggered off downward estimate revisions and the Zacks Consensus Estimate trended to $5.08 and $5.67 per share for fiscal 2016 and fiscal 2017, down 3 cents and 9 cents, respectively, over the past 30 days. For the first quarter of fiscal 2016, the Zacks Consensus Estimate of a loss of $1.50 widened by 33 cents over the same time frame.
Shares of this Zacks Rank #3 (Hold) stock has tumbled roughly 17% so far in the year, while in the past one year, it has fallen about 8.3%. But all is not bleak at Deckers. The company is targeting profitable markets, and remains focused on product innovation, store augmentation and enhancing eCommerce capabilities.
Yet we would like to bring to investors’ notice three footwear stocks that are at far more comfortable positions than Deckers based on the parameters of Zacks Rank, estimate revision, and stock movement.
3 Alternative Picks
We suggest investing in Skechers USA Inc. (SKX), the designer, developer, marketer and distributor of footwear for men, women and children. This Zacks Rank #2 (Buy) stock has more than doubled in the past year.
The Manhattan Beach, CA-based company has delivered an average positive earnings beat of 22.5% over the trailing four quarters. It is expected to witness earnings growth of 51.4% in 2015 and 27.6% in 2016. The Zacks Consensus Estimate also has been on the rise over the past 60 days.
Rocky Brands, Inc. (RCKY), designer, manufacturer and marketer of footwear and apparel, is another solid bet. The stock also holds a Zacks Rank #2 and has surged roughly 22% in one year. Based in Nelsonville, OH, the company delivered an average positive earnings surprise of 24.2% over the trailing four quarters. The company is expected to witness earnings growth of 21.5% in 2015 and 19% in 2016. The Zacks Consensus Estimate has been showing an uptrend over the past 60 days.
Another Zacks Rank #2 stock that investors may look forward to is Caleres, Inc. ( CAL). This footwear company has advanced 15.4% in the past one year. An average positive earnings surprise of 20.8% over the trailing four quarters and long-term earnings growth rate of 11% also make this St. Louis, MO player pretty attractive. The company is expected to witness earnings growth of 13% in fiscal 2015 and 12.3% in fiscal 2016. The Zacks Consensus Estimate too has been increasing over the past 30 days.
Bottom Line
We do not buy footwear that does not fit, suit or last. The same applies to stocks. Investors can confidently end their search at stocks with a better Zacks Rank status of either #1 (Strong Buy) or #2 (Buy), which encompass its strong fundamentals, promise price movement and show analysts’ constructive view on it via positive estimate revisions. A sturdy portfolio always gives favorable returns.
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DECKERS OUTDOOR (DECK): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis Report
ROCKY BRANDS (RCKY): Free Stock Analysis Report
CALERES INC (CAL): Free Stock Analysis Report
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