Deckers (DECK) Suffers a Larger Drop Than the General Market: Key Insights

Zacks
01-25

The most recent trading session ended with Deckers (DECK) standing at $217.16, reflecting a -0.65% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.29% loss on the day. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 0.5%.

Prior to today's trading, shares of the maker of Ugg footwear had gained 4.36% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.53% and the S&P 500's gain of 2.52% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Deckers in its upcoming earnings disclosure. The company's earnings report is set to go public on January 30, 2025. The company is predicted to post an EPS of $2.50, indicating a 0.79% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.7 billion, up 9.13% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.63 per share and a revenue of $4.89 billion, indicating changes of +15.84% and +14.08%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.62% upward. Deckers presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Deckers is presently being traded at a Forward P/E ratio of 38.8. This signifies a premium in comparison to the average Forward P/E of 16.57 for its industry.

It's also important to note that DECK currently trades at a PEG ratio of 2.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.54 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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