Deckers (DECK) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Deckers (DECK) reached $754.15, with a -1.77% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.43%.
Heading into today, shares of the maker of Ugg footwear had gained 10.67% over the past month, outpacing the Retail-Wholesale sector's gain of 0.4% and the S&P 500's gain of 2.08% in that time.
The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company's earnings per share (EPS) are projected to be $11.05, reflecting a 5.44% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.41 billion, indicating a 4.49% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $23.62 per share and a revenue of $4.05 billion, indicating changes of +21.94% and +11.68%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Deckers presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Deckers is currently being traded at a Forward P/E ratio of 32.5. This represents a premium compared to its industry's average Forward P/E of 14.64.
Investors should also note that DECK has a PEG ratio of 1.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.32.
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 40% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
