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Deckers Outdoor and NIKE in the Box have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – January 24, 2025 – Zacks Equity Research shares Deckers Outdoor (DECK - Free Report) as the Bull of the Day and NIKE (NKE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Netflix Inc. (NFLX - Free Report) and The Walt Disney Co. (DIS - Free Report) .
Deckers Outdoor is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. The stock sports a Zacks Rank #1 (Strong Buy), with EPS expectations creeping higher across the board over recent months.
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Retail – Apparel & Shoes industry, which is currently ranked in the top 27% of all Zacks industries. Let’s take a closer look at how the company stacks up.
DECK Keeps Positively Shocking Investors
Solid quarterly releases have been driving the positive outlook, with the company exceeding the Zacks Consensus EPS estimate by an average of 40% across its last four releases.
Concerning headline figures in its latest print, EPS shot 40% higher year-over-year alongside 20% growth in sales, with DECK also upping its FY25 sales outlook following the release. Below is a chart illustrating the company’s sales on a quarterly basis.
HOKA and UGG brand momentum remains strong, with the company experiencing strong consumer demand yet again. As shown below, the brands’ results have regularly exceeded our consensus expectations as of late, reflecting strong momentum.
Deckers Outdoor also saw margin expansion throughout the period, continuing an established trend from recent periods. Please note that the margins chart below tracks on a trailing twelve-month basis.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Deckers Outdoor would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
NIKE is the global leader in athletic footwear, apparel, equipment, and sports-related accessories, with operations in over 160 countries. Analysts downwardly revised their earnings expectations across the board following its latest quarterly release, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Let’s take a closer look at what’s been affecting the company.
NIKE Faces Hurdles
NIKE shares faced pressure following the release of its latest quarterly results, with commentary not all that soothing either. Concerning headline figures in the release, EPS fell 25% year-over-year alongside an 8% decline in sales.
The performance on headline numbers jumps out, with the company’s top line primarily remaining stagnant and showing little growth over recent years. Below is a chart illustrating the company’s sales on a quarterly basis.
"We're taking immediate action to reposition our business, so we can get back to driving long-term shareholder value. Our team is ready to go, and I'm confident you will see more moments of NIKE being NIKE again,"said CEO Elliott Hill.
The valuation picture here remains rich, with the current 32.7X forward 12-month earnings multiple sitting above the 30.4X five-year median. The current PEG ratio works out to 2.2X, again a hair above the five-year median and quite elevated given the forecasted growth.
Bottom Line
Analysts' negative earnings estimate revisions, resulting from weak quarterly results, paint a challenging picture for the company’s shares in the near term.
NIKE is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). These stocks sport a notably stronger earnings outlook and the potential to deliver explosive gains in the near term.
Additional content:
Netflix Q4 Earnings Impress: Buy Each Dip and Hold for Long Term
Global streaming giant Netflix Inc. reported excellent financial numbers for fourth-quarter 2024. The company reported earnings of $4.27 per share, which beat the Zacks Consensus Estimate by 1.67%. The bottom line jumped 102.4% from the year-ago quarter. Revenues of $10.24 billion increased 16% year over year and beat the consensus mark by 1.29%.
NFLX has maintained healthy engagement levels in the fourth quarter, with about two hours of viewing per member per day, indicating strong member retention. The company added 18.91 million subscribers (the biggest quarter of net adds in the company’s history) compared with 13.12 million net new subscribers in the year-ago period.
The average revenue per membership was up 1% year over year and 3% on foreign-exchange neutral basis in the reported quarter. At the end of the quarter, Netflix had 301.63 million paid subscribers across more than 190 countries, up 15.9% year over year. With this gigantic subscriber base, NFLX is likely to stay ahead of its closest rival The Walt Disney Co.
Strong Guidance by Netflix
Netflix anticipates first-quarter 2025 total revenues of $10.416 billion, suggesting growth of 11.2% year over year. Management projected earnings of $5.58 per share for the ensuing quarter. For 2025, the company forecast revenues in the range of $43.5-$44.5 billion. NFLX is targeting a 2025 operating margin of 29%, up from the previous forecast of 28% and two points higher than the 27% operating margin in 2024.
Solid Estimate Revisions for NFLX Stock
For first-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $10.5 billion, suggesting an improvement of 12.1% year over year and earnings per share of $5.98, indicating an increase of 13.3% year over year. The company pulled off positive earnings surprises in the last four reported quarters delivering an average beat of 7.2%.
Moreover, Netflix has witnessed positive earnings estimate revisions for 2025 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 13.4% and 18.2%, respectively, for revenues and EPS in 2025. The current Zacks Consensus Estimate for 2026 revenues and EPS reflects an upside of 11.1% and 19.5%, respectively.
Impressive Valuation of NFLX Shares
Netflix has a long-term (3-5 years) growth rate of 26.2%, well above Wall Street’s benchmark — the S&P 500 Index — growth rate of 12.3%. The company has a return on equity (ROE) of 39.5% compared with the S&P 500’s ROE of 30.2%. NFLX has a current net margin of 22.34% compared with the S&P 500’s net margin of 12.6%.
Investment Thesis
Netflix currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. On Jan 22, the stock price touched its all-time high of $999. Moreover, the stock price soared 96% in the past year. The brokerage target priceis currently in the range of $650 to $1,100. This indicates a maximum upside of 15.3% and a downside of 32%.
However, given that earnings estimate revisions are likely to trend higher in the coming weeks, many analysts are expected to raise their price target. This will make Netflix’s risk/reward more favorable.
At this stage, it will be prudent to buy this stock on every dip. Take a systematic investment plan for this stock in order to do cost average. Hold this stock for the long term as the company’s strong execution of the last few quarters and robust future projections will generate more value. Consequently, the stock price should witness an attractive upside.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Deckers Outdoor and NIKE in the Box have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 24, 2025 – Zacks Equity Research shares Deckers Outdoor (DECK - Free Report) as the Bull of the Day and NIKE (NKE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Netflix Inc. (NFLX - Free Report) and The Walt Disney Co. (DIS - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
Deckers Outdoor is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. The stock sports a Zacks Rank #1 (Strong Buy), with EPS expectations creeping higher across the board over recent months.
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Retail – Apparel & Shoes industry, which is currently ranked in the top 27% of all Zacks industries. Let’s take a closer look at how the company stacks up.
DECK Keeps Positively Shocking Investors
Solid quarterly releases have been driving the positive outlook, with the company exceeding the Zacks Consensus EPS estimate by an average of 40% across its last four releases.
Concerning headline figures in its latest print, EPS shot 40% higher year-over-year alongside 20% growth in sales, with DECK also upping its FY25 sales outlook following the release. Below is a chart illustrating the company’s sales on a quarterly basis.
HOKA and UGG brand momentum remains strong, with the company experiencing strong consumer demand yet again. As shown below, the brands’ results have regularly exceeded our consensus expectations as of late, reflecting strong momentum.
Deckers Outdoor also saw margin expansion throughout the period, continuing an established trend from recent periods. Please note that the margins chart below tracks on a trailing twelve-month basis.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Deckers Outdoor would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
NIKE is the global leader in athletic footwear, apparel, equipment, and sports-related accessories, with operations in over 160 countries. Analysts downwardly revised their earnings expectations across the board following its latest quarterly release, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Let’s take a closer look at what’s been affecting the company.
NIKE Faces Hurdles
NIKE shares faced pressure following the release of its latest quarterly results, with commentary not all that soothing either. Concerning headline figures in the release, EPS fell 25% year-over-year alongside an 8% decline in sales.
The performance on headline numbers jumps out, with the company’s top line primarily remaining stagnant and showing little growth over recent years. Below is a chart illustrating the company’s sales on a quarterly basis.
"We're taking immediate action to reposition our business, so we can get back to driving long-term shareholder value. Our team is ready to go, and I'm confident you will see more moments of NIKE being NIKE again,"said CEO Elliott Hill.
The valuation picture here remains rich, with the current 32.7X forward 12-month earnings multiple sitting above the 30.4X five-year median. The current PEG ratio works out to 2.2X, again a hair above the five-year median and quite elevated given the forecasted growth.
Bottom Line
Analysts' negative earnings estimate revisions, resulting from weak quarterly results, paint a challenging picture for the company’s shares in the near term.
NIKE is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). These stocks sport a notably stronger earnings outlook and the potential to deliver explosive gains in the near term.
Additional content:
Netflix Q4 Earnings Impress: Buy Each Dip and Hold for Long Term
Global streaming giant Netflix Inc. reported excellent financial numbers for fourth-quarter 2024. The company reported earnings of $4.27 per share, which beat the Zacks Consensus Estimate by 1.67%. The bottom line jumped 102.4% from the year-ago quarter. Revenues of $10.24 billion increased 16% year over year and beat the consensus mark by 1.29%.
NFLX has maintained healthy engagement levels in the fourth quarter, with about two hours of viewing per member per day, indicating strong member retention. The company added 18.91 million subscribers (the biggest quarter of net adds in the company’s history) compared with 13.12 million net new subscribers in the year-ago period.
The average revenue per membership was up 1% year over year and 3% on foreign-exchange neutral basis in the reported quarter. At the end of the quarter, Netflix had 301.63 million paid subscribers across more than 190 countries, up 15.9% year over year. With this gigantic subscriber base, NFLX is likely to stay ahead of its closest rival The Walt Disney Co.
Strong Guidance by Netflix
Netflix anticipates first-quarter 2025 total revenues of $10.416 billion, suggesting growth of 11.2% year over year. Management projected earnings of $5.58 per share for the ensuing quarter. For 2025, the company forecast revenues in the range of $43.5-$44.5 billion. NFLX is targeting a 2025 operating margin of 29%, up from the previous forecast of 28% and two points higher than the 27% operating margin in 2024.
Solid Estimate Revisions for NFLX Stock
For first-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $10.5 billion, suggesting an improvement of 12.1% year over year and earnings per share of $5.98, indicating an increase of 13.3% year over year. The company pulled off positive earnings surprises in the last four reported quarters delivering an average beat of 7.2%.
Moreover, Netflix has witnessed positive earnings estimate revisions for 2025 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 13.4% and 18.2%, respectively, for revenues and EPS in 2025. The current Zacks Consensus Estimate for 2026 revenues and EPS reflects an upside of 11.1% and 19.5%, respectively.
Impressive Valuation of NFLX Shares
Netflix has a long-term (3-5 years) growth rate of 26.2%, well above Wall Street’s benchmark — the S&P 500 Index — growth rate of 12.3%. The company has a return on equity (ROE) of 39.5% compared with the S&P 500’s ROE of 30.2%. NFLX has a current net margin of 22.34% compared with the S&P 500’s net margin of 12.6%.
Investment Thesis
Netflix currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. On Jan 22, the stock price touched its all-time high of $999. Moreover, the stock price soared 96% in the past year. The brokerage target priceis currently in the range of $650 to $1,100. This indicates a maximum upside of 15.3% and a downside of 32%.
However, given that earnings estimate revisions are likely to trend higher in the coming weeks, many analysts are expected to raise their price target. This will make Netflix’s risk/reward more favorable.
At this stage, it will be prudent to buy this stock on every dip. Take a systematic investment plan for this stock in order to do cost average. Hold this stock for the long term as the company’s strong execution of the last few quarters and robust future projections will generate more value. Consequently, the stock price should witness an attractive upside.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.