Canada Goose (GOOS) Hits a 52-Week High, Can the Run Continue?

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Have you been paying attention to shares of Canada Goose HoldingsGOOS ? Shares have been on the move with the stock up 14.5% over the past month. GOOS hit a new 52-week high of $45.07 in the previous session. Canada Goose Holdings has gained 41.9% since the start of the year compared to the 13.8% move for the Retail-Wholesale sector and the 4.1% year-to-date return for its peer group.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 8, 2018, Canada Goose Holdings reported EPS of $0.46 versus the Zacks Consensus Estimate of $0.36.

For the current fiscal year, Canada Goose Holdings is expected to post earnings of $0.72 per share on $431.14 million in revenues.

Valuation Metrics

While GOOS has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Canada Goose Holdings has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 62.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 22.3X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 2.39. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Canada Goose Holdings Inc. Price and Consensus

Canada Goose Holdings Inc. Price and Consensus | Canada Goose Holdings Inc. Quote

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Canada Goose Holdings currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Canada Goose Holdings fits the bill. Thus, it seems as though GOOS shares could have a bit more room to run in the near term.

How Does Canada Goose Holdings Stack Up to the Competition?

Shares of Canada Goose Holdings have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including Shoe Carnival SCVL , Urban Outfitters URBN , and Kering SA PPRUY , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.

The Zacks Industry Rank is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GOOS, even beyond its own solid fundamental situation.

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Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report

Urban Outfitters, Inc. (URBN): Free Stock Analysis Report

Shoe Carnival, Inc. (SCVL): Free Stock Analysis Report

Kering SA (PPRUY): Free Stock Analysis Report

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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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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