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Zumiez Inc. (ZUMZ) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Zumiez (ZUMZ - Free Report) ? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $31.37 in the previous session. Zumiez has gained 31.2% since the start of the year compared to the 11.2% move for the Zacks Retail-Wholesale sector and the 4.9% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on September 5, 2024, Zumiez reported EPS of $-0.04 versus consensus estimate of $-0.33.
For the current fiscal year, Zumiez is expected to post earnings of -$0.03 per share on $879.87 million in revenues. This represents a 97.32% change in EPS on a 0.5% change in revenues. For the next fiscal year, the company is expected to earn $0.73 per share on $907.81 million in revenues. This represents a year-over-year change of 2541.67% and 3.18%, respectively.
Valuation Metrics
Zumiez may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Zumiez has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Zumiez currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Zumiez meets the list of requirements. Thus, it seems as though Zumiez shares could have a bit more room to run in the near term.
How Does ZUMZ Stack Up to the Competition?
Shares of ZUMZ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Shoe Carnival, Inc. (SCVL - Free Report) . SCVL has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Shoe Carnival, Inc. beat our consensus estimate by 3.75%, and for the current fiscal year, SCVL is expected to post earnings of $2.65 per share on revenue of $1.24 billion.
Shares of Shoe Carnival, Inc. have gained 1.7% over the past month, and currently trade at a forward P/E of 15.16X and a P/CF of 10.61X.
The Retail - Apparel and Shoes industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ZUMZ and SCVL, even beyond their own solid fundamental situation.
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Zumiez Inc. (ZUMZ) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Zumiez (ZUMZ - Free Report) ? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $31.37 in the previous session. Zumiez has gained 31.2% since the start of the year compared to the 11.2% move for the Zacks Retail-Wholesale sector and the 4.9% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on September 5, 2024, Zumiez reported EPS of $-0.04 versus consensus estimate of $-0.33.
For the current fiscal year, Zumiez is expected to post earnings of -$0.03 per share on $879.87 million in revenues. This represents a 97.32% change in EPS on a 0.5% change in revenues. For the next fiscal year, the company is expected to earn $0.73 per share on $907.81 million in revenues. This represents a year-over-year change of 2541.67% and 3.18%, respectively.
Valuation Metrics
Zumiez may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Zumiez has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Zumiez currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Zumiez meets the list of requirements. Thus, it seems as though Zumiez shares could have a bit more room to run in the near term.
How Does ZUMZ Stack Up to the Competition?
Shares of ZUMZ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Shoe Carnival, Inc. (SCVL - Free Report) . SCVL has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Shoe Carnival, Inc. beat our consensus estimate by 3.75%, and for the current fiscal year, SCVL is expected to post earnings of $2.65 per share on revenue of $1.24 billion.
Shares of Shoe Carnival, Inc. have gained 1.7% over the past month, and currently trade at a forward P/E of 15.16X and a P/CF of 10.61X.
The Retail - Apparel and Shoes industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ZUMZ and SCVL, even beyond their own solid fundamental situation.