Deckers (DECK) closed the most recent trading day at $356.10, moving -0.07% from the previous trading session. This change was narrower than the S&P 500’s 1.03% loss on the day. Elsewhere, the Dow lost 1.48%, while the tech-heavy Nasdaq lost 0.24%.
Coming into today, shares of the maker of Ugg footwear had lost 18.7% in the past month. In that same time, the Consumer Discretionary sector lost 10.15%, while the S&P 500 lost 0.62%.
Wall Street will be looking for positivity from Deckers as it approaches its next earnings report date. In that report, analysts expect Deckers to post earnings of $8.25 per share. This would mark a year-over-year decline of 8.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 9.33% from the year-ago period.
DECK’s full-year Zacks Consensus Estimates are calling for earnings of $15.08 per share and revenue of $3.05 billion. These results would represent year-over-year changes of +11.95% and +19.82%, respectively.
It is also important to note the recent changes to analyst estimates for Deckers. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Deckers is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Deckers is holding a Forward P/E ratio of 23.63. Its industry sports an average Forward P/E of 21.02, so we one might conclude that Deckers is trading at a premium comparatively.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% 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 DECK in the coming trading sessions, be sure to utilize Zacks.com.
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