Deckers Outdoor (DECK) appears potentially undervalued after its stock rose approximately 7% over the past month. This recent increase functions as a short-term correction, not a reversal of the longer-term trend, which saw the stock down significantly over the past year.
Analysts are reassessing DECK’s growth narrative, projecting a modest upside. The fair value estimate stands at $111.40 per share, compared to the last closing price of $106.79.
The positive outlook rests on Deckers’ ongoing investments in its direct-to-consumer (DTC) business and expansion into new markets. These strategies aim to improve profit margins by lessening reliance on wholesale channels and boosting higher-margin direct sales.
Despite concerns regarding slowing growth for the popular UGG and HOKA brands, analysis suggests the company retains potential for upside.