Deckers Outdoor stock gets an emphatic Ugg

The company offers 2 of the most popular footwear brands.

By Jim Van Meerten Aug 2, 2011 1:51PM

A few years ago my teenage daughter told me she wanted Uggs for Christmas.  I spent days going from store to store to find them. Since then I've noticed many teenagers in shorts and even bathing suits wearing the clunky-looking boots. 

My Teva sandals are my favorite footwear, and lots of people must agree. Deckers Outdoor (DECK) knows how to design and distribute creative footwear that is worn by people young and old, and its stock deserves your attention, too. Based on its recent price momentum, investors also think so.

Deckers makes footwear and accessories for outdoor activities and everyday use. It offers casual open- and closed-toe footwear, as well as performance footwear, including sport shoes, light hikers, amphibious footwear and travel shoes. It also offers sheepskin footwear, sustainable footwear and sandal. 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 6 strong buy, 4 buy and 3 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 5 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
Summary: 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 sure delivers on all 3. As consumers start to return to the mall, this stock should receive more that its share of their discretionary spending, especially among youths.

Charts and technical data provided by Barchart.

Jim Van Meerten is a Marketocracy Master.



Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
262 rated 2
480 rated 3
651 rated 4
649 rated 5
629 rated 6
616 rated 7
496 rated 8
346 rated 9
111 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.