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Boot Barn (BOOT) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Boot Barn (BOOT) closed at $43.48 in the latest trading session, marking a +0.98% move from the prior day. This change outpaced the S&P 500's 0.49% gain on the day. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.43%.

Prior to today's trading, shares of the Western apparel and footwear retailer had gained 7.95% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.62% and the S&P 500's gain of 2.9% in that time.

Investors will be hoping for strength from BOOT as it approaches its next earnings release. The company is expected to report EPS of $0.78, up 18.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $280.99 million, up 10.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $866.93 million, which would represent changes of +30.37% and +11.6%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BOOT. 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 company's business outlook.

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, 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 remained stagnant. BOOT is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that BOOT has a Forward P/E ratio of 24.43 right now. This represents a premium compared to its industry's average Forward P/E of 13.31.

Investors should also note that BOOT has a PEG ratio of 1.44 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.48 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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