Is Deckers Outdoor Corp (DECK) a Buy?

Furthermore, when asked whether they view their UGGs as a fashion product or a utilitarian product, 74% chose the latter. Investors need to realize that UGGs aren’t simply an accessory for college girls — it’s an enduring brand that was born in the California surf scene in the 1970s.

As Deckers Outdoor Corp (NASDAQ:DECK) builds out more stores and resumes attractive growth in Asian markets (arguably where most of the growth will come from), expect valuations to tick upwards. The stock currently trades at 12 times forward earnings, which is very reasonable given the potential to retrack toward growth. For reference, NIKE, Inc. (NYSE:NKE) trades at 21.5 times forward earnings, and Wolverine World Wide, Inc. (NYSE:WWW) , purveyor of many brands from Sperry to Saucony, trades at 16 times forward earnings. Even a modest correction for Deckers would send the stock up a material amount, with a protected downside at today’s price.

Though the stock has risen substantially in recent months, Deckers Outdoor Corp (NASDAQ:DECK) may still offer value to investors interested in the company.

The article Why Deckers Is Still a Buy originally appeared on Fool.com is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Nike.

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