5 World-Class Shoe Stocks to Buy Now

2. Deckers Outdoor Corp (NYSE:DECK)

Number of Hedge Fund Shareholders: 36

Deckers Outdoor Corp (NYSE:DECK) owns several brands of footwear, including popular slippers and boots brand UGG, as well as Teva, Hoka, and Sanuk. Deckers also sells apparel, accessories, and handbags. The company has over 100 UGG retail stores, in addition to an e-commerce platform and various wholesale customers.

Deckers Outdoor Corp (NYSE:DECK) was recently added to Wedbush’s Best Ideas List, with analyst Tom Nikic recently upgrading the stock to ‘Outperform’ from ‘Neutral’ and raising his price target on it to $410 from $320. Nikic noted that the company was one of the few within his coverage that raised its earnings guidance this year, and believes the Hoka brand is one of the most compelling growth stories in the footwear space. He’s also bullish on the company’s top-line growth, strong balance sheet, and hefty margins.

There was a 22% drop in hedge fund ownership of Deckers Outdoor Corp (NYSE:DECK) during Q2 and there’s been a 33% decline since ownership of DECK peaked at the end of Q3 2020. Robert Pitts’ Steadfast Capital Management has the largest stake in Deckers Outdoor among the funds tracked by Insider Monkey, owning 1.27 million shares.