Markets

Columbia Sportswear (COLM) Gains But Lags Market: What You Should Know

Columbia Sportswear (COLM) closed the most recent trading day at $94.11, moving +0.52% from the previous trading session. This move lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1.42%, and the Nasdaq, a tech-heavy index, added 1.4%.

Coming into today, shares of the maker of outdoor gear had lost 1.41% in the past month. In that same time, the Consumer Discretionary sector lost 0.53%, while the S&P 500 gained 0.38%.

Investors will be hoping for strength from COLM as it approaches its next earnings release. In that report, analysts expect COLM to post earnings of $1.54 per share. This would mark year-over-year growth of 9.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $881.48 million, up 10.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $3.03 billion. These totals would mark changes of +18.7% and +8.88%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for COLM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. COLM is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, COLM currently has a Forward P/E ratio of 19.66. This valuation marks a premium compared to its industry's average Forward P/E of 13.58.

Also, we should mention that COLM has a PEG ratio of 1.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 1.9 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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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.