How Much Higher Can Ugg's Parent Stock Climb?

Deckers Outdoor looks to reach brand new highs in 2021

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Deckers Outdoor Corporation (NYSE:DECK) is a footwear company based in the United States that designs, markets, and distributes footwear, apparel, and accessories. DECK’s portfolio of brands includes UGG, KOOLABURRA, HOKA ONE ONE, Teva, and Sanuk. Deckers' products are sold in more than 50 countries and territories through select department and specialty stores, company-owned and operated retail stores, and online stores.

Deckers stock has increased about 73% in price year-over-year and DECK is trading up nearly 80% since bottoming out at a 52-week low of $241.24 last November. Additionally, shares of DECK have grown 36% year-to-date and Deck Outdoors stock is currently down just 5% after reaching up and tapping a 52-week high of $451.49 in mid-September of this year.

From a fundamental point of view, Deckers stock's valuation is on the richer side with a price-earnings ratio of 27.55 and a price-sales ratio of 4.21. However, DECK has maintained strong and consistent top- and bottom-line growth in recent years. Deckers Outdoor's revenues are up 50% and its net income has increased a jaw-dropping 284% since fiscal 2017. In addition, DECK's trailing 12-month revenues and trailing 12-month net income are up 12.5% and 15%. respectively, in comparison to the footwear company's fiscal 2020 figures.

Moreover, Deckers Outdoor's has a solid balance sheet with $746 million in cash and just $231 million in total debt, meaning the footwear company is well positioned to continue expanding. Overall, DECK remains a viable long-term investment, but Deckers stock could see weakness in the short-term due to its hefty valuation.

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