Is Deckers Outdoor Corp (DECK) Destined for Greatness?

Will that continue? More recent signs point to an uptick in interest, as Deckers had a good December, thanks to reports that its Ugg boots were a hot holiday item. Shortly before that report, a Sterne Agee analyst gave Deckers a major price target upgrade, and it’s certainly plausible — with a single-digit P/E, Deckers is about as cheap as it’s ever been  in our entire three-year tracking period. That’s less than half what NIKE, Inc. (NYSE:NKE) and Wolverine World Wide, Inc. (NYSE:WWW) shares trade for today, which indicates both a great amount of potential in Deckers, and a greater sense of investor faith in more diversified shoe brands. Neither of them had the top-selling shoe on a certain online retailer this Christmas, but if you’ve got 50 different varieties to choose from, the sales of one particular model become a little less important.

Deckers appears to be on the right track, but it’s got to maintain momentum in a challenging retail environment. The Consumer Confidence Index fell big time in January, which might crimp the company’s growth in the first quarter. We’ll soon find out how Deckers performed over the holidays, and that report could be a big step toward improving the company’s weak score in our analysis today.

Putting the pieces together
Today, Deckers has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Deckers Outdoor Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends Nike. The Motley Fool owns shares of Crocs and Nike.

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