Solo Brands, Inc. (DTC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Solo Brands, Inc. (DTC) closed at $5, marking a -0.6% move from the previous day. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.
Coming into today, shares of the company had lost 1.76% in the past month. In that same time, the Retail-Wholesale sector gained 3.98%, while the S&P 500 gained 5.36%.
Wall Street will be looking for positivity from Solo Brands, Inc. as it approaches its next earnings report date. In that report, analysts expect Solo Brands, Inc. to post earnings of $0.21 per share. This would mark a year-over-year decline of 47.5%. Meanwhile, our latest consensus estimate is calling for revenue of $131.37 million, down 3.42% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.95 per share and revenue of $541.23 million, which would represent changes of -11.21% and +4.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Solo Brands, Inc.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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 9.8% lower. Solo Brands, Inc. is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Solo Brands, Inc.'s current valuation metrics, including its Forward P/E ratio of 5.32. For comparison, its industry has an average Forward P/E of 19.29, which means Solo Brands, Inc. is trading at a discount to the group.
It is also worth noting that DTC currently has a PEG ratio of 0.39. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Solo Brands, Inc. (DTC) : Free Stock Analysis Report
