Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into three sports-based retail stocks to buy right now. We take a look at why Deckers Outdoor Corporation (DECK - Free Report) , Columbia Sportswear (COLM - Free Report) , and Under Armour UAA are all Zacks Rank #2 (Buy) stocks right now.
Industry giants like (NKE - Free Report) , Adidas (ADDYY - Free Report) , and red-hot Lululemon (LULU - Free Report) grab a lot of attention for their growth. Meanwhile, Wall Street and investors have for years watched closely to see how retail bellwethers from Walmart (WMT - Free Report) to Macy’s (M - Free Report) react to Amazon’s (AMZN - Free Report) encroachment and e-commerce expansion. More traditional sports-focused retailers like Dick’s Sporting Goods (DKS - Free Report) and Foot Locker (FL - Free Report) have also been impacted by changes in shopping habits. But while some retailers seemingly fail to adapt, others look strong at the moment.
Deckers Outdoor owns Teva, Sanuk, and Ugg, with most of its sales coming from its Ugg brand. The company is coming off a better-than-projected fourth quarter of fiscal 2019, which included blowout earnings. The firm’s HOKA ONE ONE brand was a fourth quarter and full-year standout, with sales up over 45% last year. DECK’s valuation picture also appears pretty solid at the moment.
Moving on, shares of Columbia are up 70% over the last two years. COLM owns its namesake brand as well as Mountain Hardware, Sorel, and others. Today the firm competes mostly with V.F. Corporation’s (VFC - Free Report) The North Face, Patagonia, and Canada Goose (GOOS - Free Report) . The firm’s Q1 revenue jumped 8% to $654.6 million. Columbia is also a dividend payer that boasts some strong top and bottom line growth estimates.
Lastly, Under Armour is a firm that has seen its stock price tank over the last five years as it fails to adapt to some of the more popular trends in retail. With that said, UAA stock is up big in 2019 and its earnings outlook appears to be headed in the right direction as some of its initiatives start to pay off.
As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at firstname.lastname@example.org. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>