A stylish stock to play China
Even after rising 100% in the past year, footwear maker Deckers could double again if it taps into the Chinese market.
Maybe Deckers (DECK) is finally getting its due. Barclay's recommendation Friday finally tells the story that this high-growth stock does not deserve to sell at 13 times earnings if you back out the cash.
Deckers has always been viewed as a fad stock because of its Uggs line, which is always supposed to be one quarter away from stalling out. But Barclay's makes the point that not only is it unlikely to stall out, but it might be accelerating with international growth. It's got only 2% of its sales in China, and the Barclay's piece speculates that China could be a huge market for the company, something I agree with.
Plus, Barclay's was willing to say that Deckers isn't just a one-product brand. Teva is a huge reignited business, and it isn't even factored in to the equation.
Me? I have liked this stock so much that it was one of my original CANDIES -- Chipotle (CMG), Apple (AAPL), Netflix (NFLX), Deckers, Intuitive Surgical (ISRG), Express Scripts (ESRX) and Salesforce.com (CRM). I have since removed Express Scripts and Intuitive Surgical for lack of growth and replaced them with F5 (FFIV) and Amazon (AMZN).
What always amazes me is that, even after this run -- the stock has gained just over 100% in the last year, with a 3:1 split in July -- Deckers has such a small market cap at $2.4 billion.
I believe it could double, given the outlook and the Chinese possibilities. Haven't missed much if that's the case!
At the time of publication, Cramer was long AAPL.
Click here to follow Cramer's trades for his Charitable Trust.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. 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 SIX Financial Information.
Here's a list of ways to profit from the potential move from defensive to cyclical stocks.
VIDEO ON MSN MONEY
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.