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Canada Goose (GOOS) Laps the Stock Market: Here's Why

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Canada Goose (GOOS - Free Report) ended the recent trading session at $10.68, demonstrating a +1.71% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.7% gain on the day. Meanwhile, the Dow experienced a rise of 1.26%, and the technology-dominated Nasdaq saw an increase of 2.51%.

Shares of the high-end coat maker have depreciated by 9.01% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.02% and the S&P 500's gain of 1.27%.

Investors will be eagerly watching for the performance of Canada Goose in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.06, signifying a 150% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $188 million, indicating a 10.28% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.83 per share and revenue of $971.12 million, indicating changes of +13.7% and -1.54%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Canada Goose. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Canada Goose currently has a Zacks Rank of #3 (Hold).

Investors should also note Canada Goose's current valuation metrics, including its Forward P/E ratio of 12.6. This signifies a discount in comparison to the average Forward P/E of 17.56 for its industry.

We can also see that GOOS currently has a PEG ratio of 0.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.74 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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