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Shoe Carnival (SCVL) Gains But Lags Market: What You Should Know

Zacks Equity Research

Shoe Carnival (SCVL) closed the most recent trading day at $36.90, moving +0.05% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.25%.

Coming into today, shares of the footwear retailer had gained 6.19% in the past month. In that same time, the Retail-Wholesale sector gained 10.7%, while the S&P 500 gained 7.92%.

SCVL will be looking to display strength as it nears its next earnings release, which is expected to be March 26, 2019. In that report, analysts expect SCVL to post earnings of $0.06 per share. This would mark a year-over-year decline of 45.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $232.50 million, down 4.41% from the year-ago period.

Investors might also notice recent changes to analyst estimates for SCVL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.68% higher. SCVL is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, SCVL is holding a Forward P/E ratio of 15.24. This valuation marks a premium compared to its industry's average Forward P/E of 14.16.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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