Shoe Carnival (SCVL) Stock Sinks As Market Gains: What You Should Know

Shoe Carnival (SCVL) closed at $37.41 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's 0.18% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.03%.

Prior to today's trading, shares of the footwear retailer had lost 4.13% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.11% and the S&P 500's gain of 4.28% in that time.

Investors will be hoping for strength from SCVL as it approaches its next earnings release, which is expected to be March 28, 2019. On that day, SCVL is projected to report earnings of $0.06 per share, which would represent a year-over-year decline of 45.45%. Meanwhile, our latest consensus estimate is calling for revenue of $232.50 million, down 4.41% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for SCVL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. SCVL is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that SCVL has a Forward P/E ratio of 14.26 right now. For comparison, its industry has an average Forward P/E of 13.55, which means SCVL is trading at a premium to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.