Zacks Investment Ideas featured Deckers Brands as a compelling investment for 2026. The analysis highlights the stock as an underperforming S&P 500 company with significant upside potential. Deckers boasts impressive long-term growth, having outperformed the S&P 500 and rivals like Nike over the last decade.
The stock experienced a significant pullback in 2025, trading more than 50% below its January 2025 highs. This decline followed weaker-than-expected guidance after the third-quarter fiscal year 2025 earnings release.
Factors contributing to the subdued outlook included tariffs, inflation, and slowing consumer spending. These elements were subsequently priced into the stock.
Despite the recent downturn, the analysis points to strong company fundamentals, including a history of earnings beats. Zacks maintains a positive outlook for fiscal year 2026. Based on upward earnings revisions, Zacks assigns the stock a #2 (Buy) rating, suggesting the selloff offers a buying opportunity for long-term investors.