5 Best Cyclical Stocks to Buy Now

4. Deckers Outdoor Corporation (NYSE:DECK)

Number of Hedge Fund Holders: 35

Deckers Outdoor Corporation (NYSE:DECK) is a California-based designer footwear company. The company authorized a $1.2 billion share repurchase program in the second quarter of 2022. Deckers Outdoor Corporation (NYSE:DECK) believes that fiscal year 2023 is off to a solid start, and the full-year 2022 EPS guide was boosted to $17.50-$18.35, up from the earlier forecast of $17.40-$18.25. Similarly, guidance for revenue growth of 10%-11% and operating margin of 17.5%-18.0% was reiterated for the full year.

On September 15, Wedbush analyst Tom Nikic upgraded Deckers Outdoor Corporation (NYSE:DECK) to Outperform from Neutral with a price target of $410, up from $320. The analyst also added Deckers Brands to the Wedbush Best Ideas List. Amidst an extremely difficult retail environment, Deckers Outdoor Corporation (NYSE:DECK) stood out in the last earnings season as one of the only firms in his coverage to actually raise guidance, the analyst added. With a combination of top-line growth, resilient margins, and a fortress balance sheet, the analyst believes that “this high-quality name is poised to be a continued outperformer.”

According to Insider Monkey’s data, 35 hedge funds were long Deckers Outdoor Corporation (NYSE:DECK) at the end of Q2 2022, compared to 46 funds in the prior quarter. Robert Pitts’ Steadfast Capital Management is the largest stakeholder of the company, with 1.26 million shares worth $323.8 million.