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JimVanMeerten (67.41)

Decker Outdoors gets an UGG from me

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August 02, 2011 – Comments (0) | RELATED TICKERS: DECK

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 these 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 foot wear that are worn by both young and old and their stock deserves your attention too.  Based on  its recent price momentum investors think so too.

Deckers Outdoor Corporation (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; and 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:

1 - 100% Barchart technical buy indicators

2 - Trend Spotter buy signals

3 - Above its 20, 50 and 100 day moving averages

4 - 10 new highs and up 14.35% in the last month

5 - Relative Strength Index 69.37% and rising

6 - Trades around 102.93 which is above its 50 day moving average of 88.90

7 - Barchart calculates a support level at 99.19

Fundamental factors:

1 - Wall Street brokerage analysts consider this a growth opportunity and have published 6 strong buy, 4 buy and 3 hold recommendation on this issue

2 - Sales are projected to increase by 23.00% this year and another 16.30% next year

Earnings 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:

1 - 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

2 - 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 Outdoor (DECK) 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 the youth market.

Charts and technical data provided by Barchart.

Another article by this investor:  Its a good time to acquire Johnson & Johnson at a discount

Jim Van Meerten is a Marketocracy Master

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