Is Most-Watched Stock Deckers Outdoor Corporation (DECK) Worth Betting on Now?

Core Viewpoint - Deckers (DECK) has experienced a stock return of -8.8% over the past month, underperforming the Zacks S&P 500 composite's -3.9% change and the Zacks Retail - Apparel and Shoes industry's -8.9% loss, raising questions about its near-term performance [1] Earnings Estimates Revisions - For the current quarter, Deckers is expected to post earnings of $0.55 per share, reflecting a decrease of -33.7% from the same quarter last year, with the Zacks Consensus Estimate changing by -2.4% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $5.88, indicating a year-over-year increase of +21%, with a recent change of -1.2% [4] - For the next fiscal year, the consensus estimate is $6.52, suggesting an increase of +11% from the previous year, with a change of -1.2% over the past month [5] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $983.39 million, indicating a year-over-year growth of +2.5% [9] - For the current fiscal year, the revenue estimate is $4.95 billion, reflecting a growth of +15.4%, while the next fiscal year's estimate of $5.42 billion indicates a change of +9.6% [9] Last Reported Results and Surprise History - Deckers reported revenues of $1.83 billion in the last quarter, representing a year-over-year increase of +17.1%, with an EPS of $3 compared to $2.52 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $1.71 billion by +6.7%, and the EPS surprise was +15.38% [10] - The company has consistently beaten consensus EPS and revenue estimates in the trailing four quarters [11] Valuation - Deckers is graded C in the Zacks Value Style Score, indicating it is trading at par with its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for determining whether the stock is fairly valued, overvalued, or undervalued [13][14] Bottom Line - The Zacks Rank 3 suggests that Deckers may perform in line with the broader market in the near term, despite the market buzz surrounding the company [16]