Deckers Finally Enters Oversold Territory

| About: Deckers Outdoor (DECK)

What an ugly day in the market today, but hardly unexpected. One stock I took a small position in today during the selloff was Deckers Outdoor (NASDAQ:DECK). This stock is down some 60% from its high this summer and now appears oversold especially given rapidly falling gas prices with should significantly help the retailing sector.

7 Reasons there is significant long term value in DECK at just under $45 a share:

  1. DECK is selling at the bottom of its five year valuation range based on P/E, P/B, P/S and P/CF.
  2. Despite all of its recent problems, analysts still expect double digit sales growth for both FY2011 and FY2012.
  3. Several insiders bought new shares at higher prices in May.
  4. The stock is selling at just over 8 times forward earnings, about half its five year average (16.1).
  5. The 15 analysts that cover the stock have a median price target of $75 a share on Deckers, way above the current stock price.
  6. The company has a robust balance sheet with almost $6 a share in net cash and has a five year projected PEG of way under 1 (.59).
  7. The stock is approaching long term technical support levels (see chart).

(Click to enlarge)

Disclosure: I am long DECK.