Deckers Outdoor Corp (DECK) recently rebounded from a key trend line to move back within striking distance of the 52-week high at $97.00. With a solid Q1 earnings surprise and rising estimates, this Zacks #2 Rank stock is looking like a solid pick for momentum.
Decker has posted big gains over the last 9 months, more than doubling in price after jumping from $45 to over $90. The company’s solid Q1 results from late April showcased the fundamental strength that has supported the trend.
First-Quarter Results
Revenue for the period was up 31% from last year to $205 million. Earnings also came in strong at 49 cents, 4% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 41% over the last four quarters.
UGG brand sales, its largest segment, posted an impressive 42% increase in sales from last year to $148 million. The company saw impressive gains from its largest region, with domestic sales up 27% to $148 million. And although international sales represent a smaller slice of the pie, sales were up 46% to $57 million. Its e-commerce channel is also looking strong, with sales up 27% from last year to $23.5 million.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 7 cents to $4.60 while the next-year estimate tacked on 17 cents to $5.51, 20%.
Valuation
But in spite of the gains, the valuation picture still looks solid, with a PEG ratio of 1, directly in line with the benchmark for value.
12-Month Chart
On the chart, shares recently rebounded from a key trend line to move back within striking distance of the 52-week high. Look for more support from the trend line on any weakness. Take a look below.
This Week’s Momentum Zacks Rank Buy Stocks
Spectrum Pharmaceuticals, Inc. (SPPI) has been a big winner in 2011, recently hitting a new all-time high after reporting strong Q1 results that came in well ahead of expectations. With estimates on the rise and high industry rank, this Zacks #1 Rank stock has plenty of momentum. Read Full Article.
Under Armour, Inc. (UA) has posted huge gains in the last year, recently hitting a new all-time high on a 21% earnings surprise. That and bullish estimates have this Zacks #1 Rank stock running with momentum. Read Full Article.
Sun Hydraulics Corp (SNHY) has been trading strong in the recently volatile market, recently rebounding from a key trend line to move back within striking distance of the 52-week high at $54.34. Estimates have since jumped higher, providing more support and momentum for this Zacks #1 Rank stock. Read Full Article.
Altra Holdings, Inc. (AIMC) recently rebounded from a key long-term trend line to move back within striking distance of the all-time high at $27.48. With an average earnings surprise of 19% over the last four quarters and a bullish growth projection, this Zacks #1 rank stock has plenty of momentum. Read Full Article.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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