U.S. Markets closed

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

Zacks Equity Research
ConocoPhillips (COP) closed the most recent trading day at $60.33, moving +0.02% from the previous trading session.

Shoe Carnival (SCVL) closed the most recent trading day at $32.71, moving +1.49% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.69%.

Coming into today, shares of the footwear retailer had lost 12.16% in the past month. In that same time, the Retail-Wholesale sector gained 1.67%, while the S&P 500 gained 1.95%.

Wall Street will be looking for positivity from SCVL as it approaches its next earnings report date. This 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.

It is also important to note the 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. SCVL is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, SCVL is currently trading at a Forward P/E ratio of 12.07. This valuation marks a discount compared to its industry's average Forward P/E of 13.37.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research