Hoka gets more popular as Kanye West seen wearing the boot
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.
DECK's Stochastic Oscillator is staying in oversold zone for 5 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are Nike (NYSE:NKE), Skechers USA (NYSE:SKX), VF Corp (NYSE:VFC), G-III Apparel Group Ltd (NASDAQ:GIII), Canada Goose Holdings (NYSE:GOOS), Lakeland Industries (NASDAQ:LAKE).
Industry description
Apparel/footwear might be slightly more ‘cyclical’ in the largely non-cyclical category of non-durables. While digital giants like Amazon have been rapidly expanding their presence, traditional clothing/footwear retailers have also been bulking up their online presence in recent years, to milk the burgeoning trend of online shopping among consumers across the globe. The apparel and footwear retail market was valued at around $ 360 billion in 2018, and this figure was expected to reach about $386 billion by 2020 (according to a Statista report). NIKE, Inc, V.F. Corporation and Under Armour, Inc. are some of the companies with the largest U.S. stock market caps in this segment.
Market Cap
The average market capitalization across the Apparel/Footwear Industry is 6.29B. The market cap for tickers in the group ranges from 1.66K to 140.24B. NKE holds the highest valuation in this group at 140.24B. The lowest valued company is SQBGQ at 1.66K.
High and low price notable news
The average weekly price growth across all stocks in the Apparel/Footwear Industry was 2%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 3%. TALN experienced the highest price growth at 59%, while DLAPQ experienced the biggest fall at -57%.
Volume
The average weekly volume growth across all stocks in the Apparel/Footwear Industry was -9%. For the same stocks of the Industry, the average monthly volume growth was 21% and the average quarterly volume growth was 5%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 49
P/E Growth Rating: 55
Price Growth Rating: 60
SMR Rating: 64
Profit Risk Rating: 80
Seasonality Score: -4 (-100 ... +100)