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Zumiez (ZUMZ) Stock Sinks As Market Gains: What You Should Know

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Zumiez (ZUMZ - Free Report) closed at $34.01 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.19%.

Coming into today, shares of the clothing retailer had gained 12.5% in the past month. In that same time, the Retail-Wholesale sector lost 0.13%, while the S&P 500 gained 0.32%.

Investors will be hoping for strength from ZUMZ as it approaches its next earnings release. In that report, analysts expect ZUMZ to post earnings of $0.59 per share. This would mark year-over-year growth of 7.27%. Meanwhile, our latest consensus estimate is calling for revenue of $260.37 million, up 4.65% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.16 per share and revenue of $1.02 billion. These totals would mark changes of +20.67% and +4.45%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ZUMZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ZUMZ is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, ZUMZ is currently trading at a Forward P/E ratio of 15.82. This represents a premium compared to its industry's average Forward P/E of 12.26.

Investors should also note that ZUMZ has a PEG ratio of 1.32 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.38 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ZUMZ in the coming trading sessions, be sure to utilize Zacks.com.


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