Ahead of DSW’s (DSW) upcoming second-quarter results, which it’s set to release on August 20, most analysts who cover it have maintained “hold” ratings on its stock. Of the 12 analysts covering DSW stock, 75.0% have recommended “holds,” and 25.0% have recommended “buys.”
There have been no changes in analysts’ price targets for the company over the past 30 days. Analysts’ 12-month average target price for DSW stock is $24.55, which reflects an 11.1% downside to its stock price as of August 9.
For the second quarter, analysts expect the company to post a marginal 0.3% fall in revenue to $678.3 million on a YoY (year-over-year) basis. The company’s second-quarter adjusted EPS were $0.46, representing a rise of 21.1% on a YoY basis. A lower tax rate and share repurchases are expected to cushion its bottom line.
Ratings for peers
For Shoe Carnival (SCVL), 50.0% of the four analysts covering the stock have recommended “hold” ratings, while the remaining 50.0% have rated it as a “buy.” SCVL’s mean target price is $31.25, which indicates a 2.4% downside to its stock price as of August 9.
For Deckers Outdoor (DECK), ~13.0% of the 16 analysts covering the stock have recommended “buy” ratings. Another 81.0% have rated it as a “hold.” For DECK, analysts’ mean target price is $116.77, indicating a 3.7% downside to its stock price as of August 9.
Of the 23 analysts covering Foot Locker (FL), 52.0% have given it “buy” ratings, while 35.0% have given it “hold” ratings. Analysts’ target price for FL stock is $57.95, reflecting a 21.7% upside to its stock price as of August 9.
On August 9, DSW was trading at a 12-month forward PE ratio of 16.5x. Since its fiscal first-quarter results, DSW’s valuation multiple has risen 11.1%.
In comparison, Foot Locker, Deckers, and Shoe Carnival were trading at 12-month forward PE ratios of 10.1x, 18.3x, and 14.9x, respectively, on August 9.