Deckers (DECK) Gains As Market Dips: What You Should Know

Deckers (DECK) closed at $87.76 in the latest trading session, marking a +1.66% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq decreased by 0.52%.

Shares of the maker of Ugg footwear have depreciated by 13.4% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.75%, and the S&P 500's gain of 4.34%.

Analysts and investors alike will be keeping a close eye on the performance of Deckers in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.8, signifying a 1.10% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.51 billion, indicating a 5.58% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $7.5 per share and a revenue of $5.9 billion, demonstrating changes of +6.84% and +7.88%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Deckers. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Deckers is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Deckers is presently trading at a Forward P/E ratio of 11.52. This indicates a discount in contrast to its industry's Forward P/E of 14.66.

It's also important to note that DECK currently trades at a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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