Here's Why Canada Goose (GOOS) Fell More Than Broader Market

Canada Goose (GOOS) closed at $7.82 in the latest trading session, marking a -1.39% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.48%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.56%.

Shares of the high-end coat maker have depreciated by 9.27% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 7.24%, and the S&P 500's loss of 0.82%.

Investors will be eagerly watching for the performance of Canada Goose in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.14, reflecting a 40% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $205.73 million, indicating a 3.93% increase compared to the same quarter of the previous year.

GOOS's full-year Zacks Consensus Estimates are calling for earnings of $0.9 per share and revenue of $1.14 billion. These results would represent year-over-year changes of +60.71% and +3.23%, respectively.

Investors should also note any recent changes to analyst estimates for Canada Goose. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Canada Goose is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Canada Goose has a Forward P/E ratio of 8.86 right now. This indicates a discount in contrast to its industry's Forward P/E of 15.21.

We can also see that GOOS currently has a PEG ratio of 0.5. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

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