Deckers Outdoor (DECK) knows how to design and distribute creative foot wear worn by young and old and its stock deserves your attention. Based on its recent price momentum investors think so too.
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DECK engages in the design, production, marketing, and brand management of footwear and accessories for outdoor activities and everyday casual lifestyle use. It offers casual open- and closed-toe outdoor footwear as well as additional outdoor performance footwear, including multi-sport shoes, light hiking shoes, amphibious footwear, and rugged outdoor travel shoes; sheepskin footwear; sustainable footwear; and sandals under various styles for men, women, and kids. I personally have purchased UGGs and Tevas for my family.
Let's look at the factors you should consider to see if this stock is right for your portfolio.
Barchart technical indicators:
- 100% Barchart technical buy indicators
- Trend Spotter buy signals
- Above its 20-, 50- and 100-day moving averages
- 10 new highs and up 14.35% in the last month
- Relative Strength Index 69.37% and rising
- Trades around 102.93, which is above its 50-day moving average of 88.90
- Barchart calculates a support level at 99.19
Fundamental factors:
- Wall Street brokerage analysts consider this a growth opportunity and have published six strong buy, four buy and three hold recommendation on this issue
- Sales are projected to increase by 23.00% this year and another 16.30% next year
- Earning increases are estimated to be 15.10% this year, 18.10% next year and continue to grow by 26.00% annually for the next five years
General investor sentiment:
- Individual investors as measured on Motley Fool like this stock. The 774 readers who expressed an opinion vote 84% that the stock will beat the market
- The more experienced All Stars are even more optimistic with a 91% vote for the same result
My standard advice is to have a portfolio that contains stocks with double digit projections for growth in sales and earnings that are currently experiencing positive price momentum and Decker Outdoor delivers on all three. As consumers start to return to the mall, this stock should receive more than its share of their discretionary spending, especially among the youth market.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
