Boot Barn (BOOT) closed at $16.78 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's 0.86% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 0.38%.
Prior to today's trading, shares of the Western apparel and footwear retailer had lost 23.34% over the past month. This has lagged the Retail-Wholesale sector's loss of 7.03% and the S&P 500's loss of 7.55% in that time.
BOOT will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2019. On that day, BOOT is projected to report earnings of $0.61 per share, which would represent year-over-year growth of 32.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $251.62 million, up 11.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $769.18 million. These totals would mark changes of +78.57% and +13.46%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BOOT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BOOT currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that BOOT has a Forward P/E ratio of 13.55 right now. This represents a premium compared to its industry's average Forward P/E of 13.29.
We can also see that BOOT currently has a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.