Deckers (DECK) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Company Performance - Deckers' stock closed at $214.92, reflecting a +0.38% change from the previous trading day, which lagged behind the S&P 500's gain of 0.61% [1] - Over the past month, Deckers' shares appreciated by 2.93%, outperforming the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08% [1] - The upcoming earnings report is scheduled for January 30, 2025, with an expected EPS of$ 2.50, indicating a 0.79% decline year-over-year, while revenue is projected to be $1.7 billion, showing a 9.13% increase [1] Earnings Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of$ 5.56 per share and revenue of $4.89 billion, representing increases of +14.4% and +14.08% respectively from the previous year [2] - Recent modifications to analyst estimates for Deckers are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [2] Stock Performance and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [4] - Deckers currently holds a Zacks Rank of 1 (Strong Buy), with a recent 1.31% increase in the Zacks Consensus EPS estimate over the last 30 days [4] - Deckers is trading at a Forward P/E ratio of 38.5, which is a premium compared to the industry average of 16.72, and has a PEG ratio of 2.96, compared to the industry average of 1.48 [5] Industry Overview - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]