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Shoe Carnival (SCVL) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
Meritor (MTOR) closed the most recent trading day at $23.66, moving +1.41% from the previous trading session.

Shoe Carnival (SCVL) closed at $34.88 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.46%.

Heading into today, shares of the footwear retailer had gained 3.87% over the past month, lagging the Retail-Wholesale sector's gain of 4.45% and the S&P 500's gain of 3.97% in that time.

SCVL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.84, up 1.2% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $258.90 million, up 0.56% from the year-ago period.

SCVL's full-year Zacks Consensus Estimates are calling for earnings of $2.67 per share and revenue of $1.04 billion. These results would represent year-over-year changes of +8.98% and +1.36%, respectively.

Investors should also note any recent changes to analyst estimates for SCVL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SCVL is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, SCVL currently has a Forward P/E ratio of 12.88. For comparison, its industry has an average Forward P/E of 12.92, which means SCVL is trading at a discount to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.

To follow SCVL in the coming trading sessions, be sure to utilize Zacks.com.


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