We recently published a list of 12 Most Oversold Large Cap Stocks to Invest in Now. In this article, we are going to take a look at where Deckers Outdoor Corporation (NYSE:DECK) stands against other most oversold large cap stocks to invest in now.
Impact of Tariff Uncertainty on Wall Street and the Future of US Stocks
Wall Street is being impacted by the uncertainty surrounding the tariff news. The broader has dropped a lot since Trump took office on January 20, and investors are mostly worried about tariffs because they think they could hurt economic growth and cause inflation. Investors think trade policies can reduce consumer confidence and restrict businesses’ ability to invest capital, while Trump believes tariffs can boost national revenue, promote broad-based growth, and be used as a negotiation weapon with other nations.
According to Franklin Templeton, the Magnificent Seven’s supremacy in AI has allowed US stocks to generate significant returns over the last few years, with the broader market frequently hitting all-time highs. The outlook for the market as a whole is favorable, notwithstanding high valuations. Sales growth has been accelerating, innovation and investment are still happening at a rapid pace, and this year’s earnings are predicted to increase by double digits. Additionally, the administration of the US economy is more business-friendly. However, there are concerns, primarily associated with US trade policy and the anticipated effects of tariffs on important industries, such as technology.
Franklin Templeton thinks that despite these risks, investor confidence in US stocks should continue to be high. The new administration’s policy reforms are anticipated to finally produce long-term benefits for the larger US economy, notwithstanding the possibility of increased dangers.
Franklin Templeton also stated that although the Mag 7 stocks are positioned for long-term success, market leadership is anticipated to expand as and when innovation accelerates. According to the investment firm, active management is crucial. The transition from AI platforms to infrastructure is still in progress. Consequently, it is anticipated that the success of investments will depend on the ability to select the appropriate companies at the right time—those that have the technology, strategy, and flexibility to continue and sustain long-term growth.
Thanks to innovation and investment, US stocks—mostly large-cap stocks—have been doing well. Notably, the Dow index has increased by more than 4.5% in the last six months. The investment business sees expanding chances beyond such market leaders, even though the Mag 7 stocks still sustain the market momentum. The competitive landscape is still dynamic and has been generating new development sectors as a result of the ongoing AI-driven cycle.
Our Methodology
For our methodology, we screened for stocks with a market capitalization exceeding $10 billion and a relative strength index (RSI) below 40. We then ranked these stocks based on the lowest RSI as of March 23, 2025. An RSI below 40 suggests that the stock is oversold.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer browsing a retail store, finding the perfect footwear for their casual outfits.
Deckers Outdoor Corporation (NYSE:DECK)
Relative Strength Index: 28.66
Deckers Outdoor Corporation (NYSE:DECK), based in Goleta, California, designs and distributes footwear, apparel, and accessories for both casual and high-performance needs. Its portfolio includes popular brands like UGG, HOKA, Teva, Sanuk, and Koolaburra, targeting different market segments. The company sells products through department stores, retail outlets, company-operated stores, and e-commerce across 50+ countries. The company stands out for transforming niche footwear brands into market leaders through innovation, quality, and strategic placement, combining cutting-edge technology with performance-driven design.
Deckers Outdoor Corporation (NYSE:DECK)’s revenue grew 17% year over year to $1.8 billion in the fiscal third quarter of 2025, making it its highest and most profitable quarter ever. The gross margins also increased to 60.3% this time. Due to its outstanding brand performance, UGG experienced a 16% year-over-year rise to $1.2 billion, with balanced growth across global direct-to-consumer (DTC) and wholesale channels. DTC increased by 27% and wholesale by 21%, while HOKA climbed by 24% year over year to $531 million.
To focus on more important organic growth prospects, Deckers Outdoor Corporation (NYSE:DECK) intends to phase out its Koolaburra brand in the future. With a 15% revenue growth rate forecast for the fiscal year 2025, the company has improved its outlook for the sixth year in a row of growth in the mid-teens or above, positioning it among the most oversold stocks despite its strong performance.
FPA Queens Road Small Cap Value Fund stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its Q4 2024 investor letter:
“Deckers Outdoor Corporation (NYSE:DECK) is a footwear and apparel company that owns the UGG, Hoka, Teva, Sanuk, and Koolaburra brands. Management has done a terrific job growing and extending the UGG franchise and developing Hoka running shoes. We first bought a small position in Deckers in 2015 and 2016 when the company was struggling with supply chain issues. The stock has been up more than ten times since then because of its excellent operating performance. We have trimmed up. In 2024, the company’s market cap exceeded $20 billion and we trimmed even more substantially. Deckers trades at over thirty times forward earnings (as of Dec. 31, 2024) and we continue to trim.”
Overall, DECK ranks 8th on our list of most oversold large cap stocks to invest in now. While we acknowledge the potential of DECK, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DECK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.