You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Steven Madden, Ltd. (SHOO) Hit a 52 Week High, Can the Run Continue?
Read MoreHide Full Article
Have you been paying attention to shares of Steven Madden (SHOO - Free Report) ? Shares have been on the move with the stock up 6.4% over the past month. The stock hit a new 52-week high of $48.59 in the previous session. Steven Madden has gained 13% since the start of the year compared to the 0.8% move for the Zacks Consumer Discretionary sector and the -21.2% return for the Zacks Shoes and Retail Apparel industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2024, Steven Madden reported EPS of $0.57 versus consensus estimate of $0.51.
For the current fiscal year, Steven Madden is expected to post earnings of $2.62 per share on $2.23 billion in revenues. This represents a 6.94% change in EPS on a 12.63% change in revenues. For the next fiscal year, the company is expected to earn $2.91 per share on $2.34 billion in revenues. This represents a year-over-year change of 11.07% and 4.79%, respectively.
Valuation Metrics
Steven Madden may be at a 52-week high right now, but what might the future hold for the stock? 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 they provide investors with an additional way to sort 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.
Steven Madden has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.4X. On a trailing cash flow basis, the stock currently trades at 17.3X versus its peer group's average of 13.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Steven Madden 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 (Buy) and Style Scores of A or B, it looks as if Steven Madden passes the test. Thus, it seems as though Steven Madden shares could have potential in the weeks and months to come.
How Does SHOO Stack Up to the Competition?
Shares of SHOO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Wolverine World Wide, Inc. (WWW - Free Report) . WWW has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Wolverine World Wide, Inc. beat our consensus estimate by 50%, and for the current fiscal year, WWW is expected to post earnings of $0.85 per share on revenue of $1.73 billion.
Shares of Wolverine World Wide, Inc. have gained 18.3% over the past month, and currently trade at a forward P/E of 17.6X and a P/CF of 29.63X.
The Shoes and Retail Apparel industry may rank in the bottom 56% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SHOO and WWW, even beyond their own solid fundamental situation.
In-Depth Zacks Research for the Tickers Above
Normally $25 each - click below to receive one report FREE:
Have you been paying attention to shares of Steven Madden (SHOO - Free Report) ? Shares have been on the move with the stock up 6.4% over the past month. The stock hit a new 52-week high of $48.59 in the previous session. Steven Madden has gained 13% since the start of the year compared to the 0.8% move for the Zacks Consumer Discretionary sector and the -21.2% return for the Zacks Shoes and Retail Apparel industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2024, Steven Madden reported EPS of $0.57 versus consensus estimate of $0.51.
For the current fiscal year, Steven Madden is expected to post earnings of $2.62 per share on $2.23 billion in revenues. This represents a 6.94% change in EPS on a 12.63% change in revenues. For the next fiscal year, the company is expected to earn $2.91 per share on $2.34 billion in revenues. This represents a year-over-year change of 11.07% and 4.79%, respectively.
Valuation Metrics
Steven Madden may be at a 52-week high right now, but what might the future hold for the stock? 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 they provide investors with an additional way to sort 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.
Steven Madden has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.4X. On a trailing cash flow basis, the stock currently trades at 17.3X versus its peer group's average of 13.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Steven Madden 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 (Buy) and Style Scores of A or B, it looks as if Steven Madden passes the test. Thus, it seems as though Steven Madden shares could have potential in the weeks and months to come.
How Does SHOO Stack Up to the Competition?
Shares of SHOO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Wolverine World Wide, Inc. (WWW - Free Report) . WWW has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Wolverine World Wide, Inc. beat our consensus estimate by 50%, and for the current fiscal year, WWW is expected to post earnings of $0.85 per share on revenue of $1.73 billion.
Shares of Wolverine World Wide, Inc. have gained 18.3% over the past month, and currently trade at a forward P/E of 17.6X and a P/CF of 29.63X.
The Shoes and Retail Apparel industry may rank in the bottom 56% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SHOO and WWW, even beyond their own solid fundamental situation.