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Strength Seen in Deckers (DECK): Can Its 7% Jump Turn into More Strength?
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Deckers (DECK - Free Report) shares soared 7% in the last trading session to close at $380.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% gain over the past four weeks.
Shares of Deckers got a boost following NIKE Inc.’s (NKE - Free Report) impressive fourth-quarter fiscal 2021 performance that skewed investors’ focus on a host of apparel and shoe stocks. Industry experts believe that demand for fitness apparel, footwear and other accessories are likely to remain strong as stores reopen and consumers ramp up spending.
Undeniably, Deckers’ focus on expanding brand assortments, introducing more innovative line of products, targeting consumers digitally and marketing investments have been contributing to its performance. We note that the company’s UGG and HOKA ONE ONE brands remain primary growth drivers.
This maker of Ugg footwear is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $374.98 million, up 32.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Deckers, the consensus EPS estimate for the quarter has been revised 7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DECK going forward to see if this recent jump can turn into more strength down the road.
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Strength Seen in Deckers (DECK): Can Its 7% Jump Turn into More Strength?
Deckers (DECK - Free Report) shares soared 7% in the last trading session to close at $380.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% gain over the past four weeks.
Shares of Deckers got a boost following NIKE Inc.’s (NKE - Free Report) impressive fourth-quarter fiscal 2021 performance that skewed investors’ focus on a host of apparel and shoe stocks. Industry experts believe that demand for fitness apparel, footwear and other accessories are likely to remain strong as stores reopen and consumers ramp up spending.
Undeniably, Deckers’ focus on expanding brand assortments, introducing more innovative line of products, targeting consumers digitally and marketing investments have been contributing to its performance. We note that the company’s UGG and HOKA ONE ONE brands remain primary growth drivers.
This maker of Ugg footwear is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $374.98 million, up 32.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Deckers, the consensus EPS estimate for the quarter has been revised 7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DECK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>