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Deckers Outdoor - AI Stock Analysis

Analysis generated November 14, 2024

Deckers Outdoor Corporation is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories. Renowned for their brands such as UGG, Teva, Sanuk, HOKA ONE ONE, and Koolaburra, Deckers Outdoor focuses on providing high-quality products to its customers. Their diverse portfolio helps in reaching varied market segments and enhancing their brand equity.

Fundamental Analysis

Deckers Outdoor has posted strong financial results in the most recent quarter. Revenue for the last quarter was $1.31 billion, a significant jump of 58.88% from the prior quarter. Year-over-year (YoY), this represents an increase of 20.09%, which illustrates consistent growth.

Net income for the last quarter stood at $242 million, up by a substantial 109.57% compared to the preceding quarter and 35.72% YoY. This robust increase in net income suggests effective cost management alongside the growth in revenue.

The EBITDA for the last quarter was $319 million, a 112.14% increase from the prior quarter and a 28.53% rise from the same quarter the previous year. EBITDA growth often signals that the core operating performance of the company is healthy.

However, the current Price-to-Earnings (P/E) ratio of 31.27 may be considered high relative to the industry average, indicating potential overvaluation. Additionally, recent insider selling could be perceived as a bearish indicator, though it may not necessarily reflect the company's long-term prospects.

Technical Analysis

Today, the stock price of Deckers Outdoor is $177.96, which shows an impressive rise of 10.72% compared to a month ago. Over a one-year period, the price has surged by 68.86%, highlighting a strong bullish trend.

The current Simple Moving Average over 10 days (SMA10) stands at $173.76, up from the previous SMA10 of $172.19. This increment suggests a continuing upward price movement. Additionally, the Relative Strength Index (RSI) is 66.3, which indicates a neutral condition but is nearing overbought levels.

Alternative Data Analysis

In terms of job postings and employee sentiment, Deckers Outdoor currently has 412 open positions, up by 51% over the past few months. This indicates the company is planning expansion and could be seen as a promising sign of growth.

Deckers Outdoor's business outlook among employees is neutral, indicating neither overwhelmingly positive nor negative internal sentiment. Web traffic data show an estimated 270,000 visitors to their website, an increase of 118% recently, suggesting successful marketing efforts and potential growth in customer acquisition.

The company's social media presence is also on the rise, with 3,600 followers on Instagram, up by 8% over the last few months, indicating growing engagement and interest in the brand.

Lastly, AltIndex's AI score, which analyzes a company's stock price using fundamental, technical, and alternative data, gives Deckers Outdoor a score of 67, signaling a buy recommendation.

Conclusion and Recommendation

Based on the comprehensive analysis, Deckers Outdoor demonstrates strong revenue and net income growth, supported by a substantial rise in EBITDA. Although the high P/E ratio and insider selling might pose concerns, the overall financial health remains good.

Technically, the stock shows upward momentum, and alternative data analytics point toward a growth trajectory, supported by increasing job postings and consumer interest. Given the AI score of 67 from AltIndex, which translates to a buy recommendation, and considering all other qualitative and quantitative factors, Deckers Outdoor appears to be a good investment opportunity.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.