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Zumiez (ZUMZ) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Zumiez (ZUMZ) closed the most recent trading day at $31.99, moving +0.44% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.

Prior to today's trading, shares of the clothing retailer had gained 0.95% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.12% and the S&P 500's loss of 0.14% in that time.

Wall Street will be looking for positivity from ZUMZ as it approaches its next earnings report date. The company is expected to report EPS of $0.59, up 7.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $260.37 million, up 4.65% from the year-ago period.

ZUMZ's full-year Zacks Consensus Estimates are calling for earnings of $2.16 per share and revenue of $1.02 billion. These results would represent year-over-year changes of +20.67% and +4.45%, respectively.

Investors might also notice recent changes to analyst estimates for ZUMZ. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZUMZ is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, ZUMZ currently has a Forward P/E ratio of 14.77. For comparison, its industry has an average Forward P/E of 11.77, which means ZUMZ is trading at a premium to the group.

We can also see that ZUMZ currently has a PEG ratio of 1.23. 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.23 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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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