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Deckers (DECK) Rises But Trails Market: What Investors Should Know

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Deckers (DECK - Free Report) closed the latest trading day at $159.45, indicating a +0.02% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.38%.

Coming into today, shares of the maker of Ugg footwear had lost 0.29% in the past month. In that same time, the Retail-Wholesale sector gained 6.34%, while the S&P 500 gained 2.06%.

Market participants will be closely following the financial results of Deckers in its upcoming release. The company is forecasted to report an EPS of $1.21, showcasing a 6.14% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.19 billion, indicating a 9.15% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.20 per share and a revenue of $4.78 billion, signifying shifts of +7% and +11.5%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.22% lower. Deckers currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Deckers is at present trading with a Forward P/E ratio of 30.65. This signifies a premium in comparison to the average Forward P/E of 17.49 for its industry.

One should further note that DECK currently holds a PEG ratio of 2.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.78.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 43% of all industries, numbering over 250.

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


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