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

Deckers (DECK) closed at $100.26 in the latest trading session, marking a -1.36% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 0.1%.

Coming into today, shares of the maker of Ugg footwear had lost 2.57% in the past month. In that same time, the Retail-Wholesale sector lost 2.61%, while the S&P 500 lost 1.74%.

The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. The company is predicted to post an EPS of $0.81, indicating a 19% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 5.9% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.87 per share and revenue of $5.43 billion. These totals would mark changes of +8.53% and +8.89%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Deckers. 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 shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Deckers presently features a Zacks Rank of #2 (Buy).

From a valuation perspective, Deckers is currently exchanging hands at a Forward P/E ratio of 13.91. This indicates a discount in contrast to its industry's Forward P/E of 15.95.

It's also important to note that DECK currently trades at a PEG ratio of 2.18. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.47 at the close of the market yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 33% echelons 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.

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

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