Jim Cramer Shared Insights on These 14 Stocks

3. Deckers Outdoor Corporation (NYSE:DECK)

Number of Hedge Fund Holders: 63

Deckers Outdoor Corporation (NYSE:DECK) is one of the stocks Jim Cramer shared insights on. During the episode, Cramer praised the company’s recent earnings report and said:

“… When the company reported last week, it delivered an excellent set of numbers, and the stock shot up more than 11% in a single session last Friday. So, we have to ask ourselves, has Deckers turned itself around, or is it too soon to circle back to this one, as the stock’s nearly 4% decline today would suggest? Okay, first, you need to understand is that going into the quarter, expectations were incredibly low. That’s what happens when a stock gets cut in half. And once the expectations get low enough, it’s easy for them to be beat…

Clearly, Deckers had a much better-than-expected quarter, but it takes more than one thing to turn things around here… Management didn’t shy away from acknowledging the mistakes that had been plaguing the company in recent quarters and what they needed to do to fix those problems. They talked about doing a better job of managing product life cycles, so they’re launching new products when the new products are wanted, ideally aligning with key shopping periods…

… So where do I stand on Deckers now? Last time I talked about this one, I said the stock looked cheap at 17 times earnings, even with the Vietnam overhang. Now, there’s no more overhang, and they just reported a tremendous quarter, yet the stock only trades at just under 18 times this year’s earnings estimates. You’re practically getting the quarter and the lower tariffs from Vietnam for free. As for the nearly 4% decline today, we think it was related to an upgrade of Nike from… JPMorgan retail analyst Matt Boss who said that the leading footwear and apparel company was poised to make a major recovery.

That may be the case, but we’re not convinced that it’s going to be at the expense of Deckers and the HOKA brand, at least based on what the quarter just reported. Bottom line: Deckers saw its stock collapse earlier this year because everyone thought that HOKA had run outta steam, but HOKA just delivered almost 20% growth for the latest quarter. So call me a believer. I think this one has got more upside.”

Deckers (NYSE:DECK) designs and markets footwear, apparel, and accessories across several brands, including UGG, HOKA, Teva, Koolaburra, and AHNU.