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Columbia Sportswear (COLM) Outpaces Stock Market Gains: What You Should Know

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Columbia Sportswear (COLM - Free Report) closed at $98.35 in the latest trading session, marking a +1.19% move from the prior day. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.34%.

Heading into today, shares of the maker of outdoor gear had lost 3.88% over the past month, outpacing the Consumer Discretionary sector's loss of 4.49% and lagging the S&P 500's loss of 1.17% in that time.

Investors will be hoping for strength from COLM as it approaches its next earnings release. The company is expected to report EPS of $1.54, up 9.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $881.48 million, up 10.77% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.76 per share and revenue of $3.03 billion, which would represent changes of +18.7% and +8.88%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for COLM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 a Zacks Rank #3 (Hold).

Investors should also note COLM's current valuation metrics, including its Forward P/E ratio of 20.41. For comparison, its industry has an average Forward P/E of 14.01, which means COLM is trading at a premium to the group.

It is also worth noting that COLM currently has a PEG ratio of 1.83. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

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

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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