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Deckers (DECK) Soars 4.3%: Is Further Upside Left in the Stock?

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Deckers (DECK - Free Report) shares rallied 4.3% in the last trading session to close at $436.63. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.6% loss over the past four weeks.

Shares of Deckers got a boost after Crocs (CROX - Free Report) outlined its long-term strategy and key initiatives to deliver sustainable growth. This shifted investors’ focus on to a host of apparel and shoes stocks.

Deckers’ focus on accelerating omni-channel capabilities, international expansion, new product categories as well as customer-centric product and marketing strategies have been contributing to its performance. We note that the company’s UGG and HOKA ONE ONE brands remain primary growth drivers. Management envisions fiscal 2022 net sales in the range of $3.010-$3.060 billion. This suggests a sharp increase of 18-20% from $2.546 billion reported in fiscal 2021.
 

Price and Consensus

Price Consensus Chart for DECK

This maker of Ugg footwear is expected to post quarterly earnings of $3.59 per share in its upcoming report, which represents a year-over-year change of +0.3%. Revenues are expected to be $762.8 million, up 22.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Deckers, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DECK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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