Deckers Outdoor (DECK): Is the Recent Share Price Rebound Signalling Undervalued Upside?

Deckers Outdoor (DECK) has been quietly grinding higher, with the stock up about 7% over the past month and roughly 4% in the past 3 months as investors reassess its growth story.

See our latest analysis for Deckers Outdoor.

That recent 7.1% 1 month share price return looks more like a short term reset than a full trend reversal. This is especially clear when you set it against the 1 year total shareholder return of negative 48.5 percent and the much stronger three and five year total shareholder returns.

If this kind of rebound has you thinking about what else could be setting up for a similar move, now is a good time to explore fast growing stocks with high insider ownership.

With modest revenue and profit growth, a small discount to analyst targets, and shares still far below last year’s highs, is Deckers Outdoor quietly undervalued here or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 4.1% Undervalued

With Deckers Outdoor closing at $106.79 against a narrative fair value of about $111.40, the story points to modest upside still on the table.

The continued investment in direct to consumer (DTC) operations and expansion into new markets with selective retail partnerships is expected to enhance margins by reducing reliance on wholesale channels and increasing full price sales with higher margin direct sales strategies.

Read the complete narrative.

Want to see how steady top line growth, easing margins, and shrinking share count still add up to upside potential? The narrative’s earnings roadmap may surprise you.

Result: Fair Value of $111.40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer guidance for UGG and potential supply chain disruptions could pressure margins and test whether the current growth narrative still holds.

Find out about the key risks to this Deckers Outdoor narrative.

Build Your Own Deckers Outdoor Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Deckers Outdoor.

Looking for more investment ideas?

Before you move on, lock in an edge by scanning fresh opportunities our community screens every day, so you are not late to the next move.

• Capitalize on mispriced potential by targeting companies that our models flag as attractively valued through these 875 undervalued stocks based on cash flows.
• Ride structural shifts in technology and automation by focusing on innovation leaders selected in these 25 AI penny stocks.
• Strengthen your passive income strategy by zeroing in on reliable payers featured in these 14 dividend stocks with yields > 3%.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com