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Here's Why Deckers (DECK) Fell More Than Broader Market

Deckers (DECK) closed at $989.44 in the latest trading session, marking a -1.88% move from the prior day. This change lagged the S&P 500's 0.25% loss on the day. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq lost 0.79%.

The the stock of maker of Ugg footwear has risen by 12.93% in the past month, leading the Retail-Wholesale sector's loss of 0.1% and the S&P 500's gain of 3.59%.

Investors will be eagerly watching for the performance of Deckers in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.50, marking a 45.23% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $801.36 million, showing a 18.58% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $30.59 per share and revenue of $4.75 billion. These totals would mark changes of +4.9% and +10.78%, respectively, from last year.

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Any recent changes to analyst estimates for Deckers should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.99% increase. Deckers is currently a Zacks Rank #3 (Hold).

With respect to valuation, Deckers is currently being traded at a Forward P/E ratio of 32.96. This represents a premium compared to its industry's average Forward P/E of 16.25.

It's also important to note that DECK currently trades at a PEG ratio of 3.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DECK's industry had an average PEG ratio of 2.24 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report

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Zacks Investment Research