Sales of Ugg-owner Deckers (DECK) got a major boost from its increasingly popular French cushioned running shoe brand called Hoka.
Analysts have now upgraded their rating for Deckers from neutral to positive and also raised its price target for the stock from $161 to $169. Shares of Deckers have overall rose more than 4% to around $144 per share, with the stock generally rallying about 45% during the course of past year.
The shoe line is gaining fast popularity among youngsters who now prefer to wear running shoes not just to the gym but all-day. Further, its partnerships with upcoming retailers like Engineered Garments and Outdoor Voices have also added visibility of the product to millennials.
Recently rapper Kanye West was spotted wearing a Hoka boot and the image raked up online sales to another level. Analysts say that the photo sent off a ‘Hoka effect’.
Analysts now expect that Hoka brand will cross $300 million in sales by 2021 and $500 million by 2025. Over the last three years, revenue has increased by almost 40% ,and the owners are confirmed that the future looks good for them.
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DECK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DECK broke above its upper Bollinger Band on May 15, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for DECK entered a downward trend on May 06, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DECK's RSI Indicator exited the oversold zone, of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on DECK as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DECK just turned positive on April 26, 2024. Looking at past instances where DECK's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
DECK moved above its 50-day moving average on May 14, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for DECK crossed bullishly above the 50-day moving average on May 17, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DECK advanced for three days, in of 365 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DECK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: DECK's P/B Ratio (11.351) is slightly higher than the industry average of (3.484). P/E Ratio (33.628) is within average values for comparable stocks, (28.646). DECK's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.937). Dividend Yield (0.000) settles around the average of (0.048) among similar stocks. P/S Ratio (5.921) is also within normal values, averaging (1.925).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a distributor of footwear, apparel and accessories
Industry ApparelFootwear