Genesco (GCO) Gains But Lags Market: What You Should Know

Genesco (GCO) closed at $32.42 in the latest trading session, marking a +1.6% move from the prior day. This change lagged the S&P 500's 4.22% gain on the day. Elsewhere, the Dow gained 4.53%, while the tech-heavy Nasdaq added 3.85%.

Coming into today, shares of the seller of footwear, hats, clothing and accessories had lost 20.23% in the past month. In that same time, the Retail-Wholesale sector lost 4.46%, while the S&P 500 lost 7.39%.

Wall Street will be looking for positivity from GCO as it approaches its next earnings report date. This is expected to be March 12, 2020. On that day, GCO is projected to report earnings of $2.48 per share, which would represent year-over-year growth of 13.76%. Meanwhile, our latest consensus estimate is calling for revenue of $687.75 million, up 1.81% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for GCO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. GCO is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note GCO's current valuation metrics, including its Forward P/E ratio of 6.65. Its industry sports an average Forward P/E of 10.59, so we one might conclude that GCO is trading at a discount comparatively.

It is also worth noting that GCO currently has a PEG ratio of 1.33. 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. GCO's industry had an average PEG ratio of 1 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.

To follow GCO in the coming trading sessions, be sure to utilize Zacks.com.