Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - Stocks are rated from A to F based on their potential to outperform the market, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [4] Momentum Score - The Momentum Score capitalizes on price trends and earnings outlook changes to identify optimal buying opportunities [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7][9] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing returns [9][10] Company Spotlight: Deckers Outdoor Corporation - Deckers is a prominent designer and producer of niche footwear and accessories, known for brands like UGG and HOKA [11] - Currently, Deckers holds a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of B due to a forward P/E ratio of 13.7 [12] - Recent earnings estimates for fiscal 2026 have been revised upward, with the Zacks Consensus Estimate increasing by $0.06 to $6.40 per share [12] - Deckers has an average earnings surprise of +35.7%, making it a noteworthy consideration for investors [12][13]

Core Insights - Deckers Outdoor Corporation (NYSE: DECK) reported disappointing fiscal second-quarter earnings, guiding for $5.35 billion in annual sales, below analysts' expectations of $5.45 billion [1][2] - The company's brands, including UGG and HOKA, are facing challenges, with UGG not performing well and HOKA experiencing increased competition [2] - There is a broader macroeconomic uncertainty affecting the enterprise level, contributing to the lukewarm guidance [2] Company Performance - Deckers Outdoor Corporation's annual sales guidance of $5.35 billion is lower than the market expectation of $5.45 billion, indicating potential struggles in meeting growth targets [1] - The performance of key brands such as UGG and HOKA is under scrutiny, with both brands not achieving expected sales figures [2] Market Competition - The competitive landscape is intensifying, with brands like Nike entering the market against HOKA, and New Balance regaining some market presence [2] - Elevated competition and macroeconomic factors are cited as reasons for the company's challenges, suggesting a need for strategic adjustments [2]

Core Viewpoint - Deckers Outdoor (DECK) stock is currently trading within a support range of $82.59 to $91.29, where it has historically rebounded significantly, achieving an average peak return of 59.2% after three previous instances of trading at this level [1] Financial Performance - The stock has faced a decline this year due to mixed earnings and margin pressures from rising tariffs and higher selling expenses, but it has strong brand momentum from high-growth lines like Hoka and Ugg [5] - Ugg sales increased by 10.1% and Hoka sales grew by 11.1%, reaching $634.1 million in the last quarter [5] - Revenue growth for DECK stands at 16.3% over the last twelve months (LTM) and an average of 16.5% over the past three years [7] - The company has a free cash flow margin of nearly 19.2% and an operating margin of 23.6% LTM [7] - The lowest annual revenue growth in the last three years was 15.1% [7] - DECK stock trades at a price-to-earnings (PE) ratio of 13.6, indicating a lower valuation compared to the S&P [7] Market Position and Risks - Deckers Outdoor has a solid financial foundation and expanding international opportunities, despite being susceptible to significant declines during market turmoil [6] - The company operates 140 retail locations worldwide and distributes through various channels, including department stores and specialty retailers [6] - Historical performance shows that DECK experienced a 44% decline during the Dot-Com crash and a 77% drop during the Global Financial Crisis, highlighting its vulnerability to market conditions [6]

Core Viewpoint - UBS analyst Jay Sole believes Deckers Outdoor (DECK.US) is "significantly undervalued," with a potential stock price increase of approximately 53% [1] - UBS maintains a "Buy" rating on the stock, highlighting that the performance of Hoka and UGG brands is expected to exceed expectations, allowing investors to recognize Deckers Outdoor's potential for high single-digit to low double-digit compound annual growth rate (CAGR) in sales and earnings per share (EPS) growth [1] Market Expectations - The market perceives Deckers Outdoor's guidance for Q2 FY2026 as conservative, with HOKA sales growth projected at 11%, which is 200 basis points below market expectations [2] - UBS argues that the company's previous higher growth statements were based on "excluding tariff impacts" rather than formal guidance, suggesting an upward revision in growth expectations when adjusted for tariffs [2] - Historically, Deckers Outdoor's final annual EPS has averaged about 17% higher than its Q2 guidance midpoint over the past four years, indicating potential for exceeding current forecasts [2] Short-term Outlook - For Q2 FY2026, Deckers Outdoor reported a revenue increase of 9.1% to $1.4931 billion, with EPS of $1.82, surpassing market expectations by $0.21 [3] - The gross margin was 56.2%, exceeding market expectations by approximately 200 basis points, while operating margin stood at 22.8% [3] - HOKA brand sales grew by 11.1%, and UGG brand sales increased by 10.1% [3] - The company accelerated its share repurchase program to $282 million in Q2, up from $183 million in Q1, indicating potential for EPS upside [3] Mid-term Growth Drivers - UBS anticipates HOKA's direct-to-consumer (DTC) sales will return to low double-digit growth by FY2027, driven by expansion in training shoes, lifestyle products, and international markets, particularly in the Asia-Pacific region [4] - The increase in high-margin DTC business and scale effects for HOKA are expected to push EBITDA margins close to 23% by FY2030, although some gains may be offset by tariff pressures [4] - The discounted cash flow (DCF) model suggests that the market currently implies a low single-digit CAGR for EPS over the next five years, while UBS estimates it to be around 9%, indicating valuation upside potential [4] Various Scenarios and Target Prices - Base case scenario: Target price of $157, with a five-year EPS CAGR of approximately 9%, recovery in HOKA's U.S. DTC and lifestyle business, and gradual tariff reductions [5] - Optimistic scenario: Target price of $239, assuming faster expansion of HOKA DTC, UGG evolving into a year-round brand, and an operating margin of about 25.5% by FY2030 [6] - Pessimistic scenario: Target price of $48, considering weak U.S. consumer spending, slower market share growth for HOKA, increased promotional activity, and a contraction in operating margins [6]

Core Insights - Ten large-cap stocks experienced significant declines last week, raising concerns for investors regarding their portfolio holdings [2] Company Performance Summary - Oklo Inc. (NYSE:OKLO) lost 15.15% this week [2] - Rigetti Computing, Inc. (NASDAQ:RGTI) fell 17.94% amid reports of the Trump administration negotiating with U.S. quantum computing firms for federal funding [2] - STMicroelectronics (NYSE:STM) declined 17.17% after providing fourth-quarter revenue guidance below analyst expectations [2] - D-Wave Quantum Inc. (NYSE:QBTS) dropped 17.57% this week [2] - NuScale Power Corporation (NYSE:SMR) fell 18.53% following a downgrade from Citigroup, which lowered its price target from $46 to $37.50 [2] - Deckers Outdoor Corporation (NYSE:DECK) decreased by 13.33% after issuing fiscal year 2026 sales guidance below expectations, leading to multiple analyst price forecast reductions [2] - Fermi Inc. (NASDAQ:FRMI) saw a decline of 14.71% this week [2] - Harmony Gold Mining Company (NYSE:HMY) fell 13.16% as precious metals stocks declined due to a pullback in gold and silver prices [2] - MP Materials Corp. (NYSE:MP) dropped 11.75% as rare earth mineral-related stocks traded lower following a U.S.-Australia deal to boost supplies of critical metals [2] - AST SpaceMobile, Inc. (NASDAQ:ASTS) fell 14.75% after announcing a proposed private offering [2]

Analyst Ratings & Price Target Changes - Intel saw multiple firms raise price targets after Q3 earnings beat, with Benchmark setting a high target of $50 per share [2] - Deckers Outdoor experienced price target cuts from Raymond James and Telsey Advisory Group due to weak 2026 sales forecast [3] - Citizens upgraded eBay to outperform, citing improved consumer experience in key categories [4] - Steeple raised eBay's price target to $89, just below the average 12-month target of roughly $92 [5] - Bank of America upgraded Zion's Bank Corp to neutral, raising its price target to $62 per share, seeing room for a rebound [8][9] - UBS cut Madna's price target to $40 from $70 after a failed vaccine trial, but maintains a buy rating [9] - Wedbush trimmed Netflix's price target to $1400 from $1500, but maintained outperform rating, implying roughly 13% upside [12] - Morgan Stanley upgraded 3M to equal weight, raising its price target to $160 from $130 [13][14] - Wedbush raised Snowflake's price target to $270 from $250, anticipating growth from AI use cases [21] - Goldman Sachs upgraded Darden Restaurants to buy, citing improved value proposition and less exposure to lower-income consumers [22] Company Specific Insights - Morgan Stanley maintains outperform rating on Tesla with a $410 price target, highlighting robo taxi potential and calling Tesla a "forgotten AI stock" [7] - Bank of America expects Meta's Q3 sales of $50 billion and earnings of $730% a share, driven by AI-powered ad engine [16] - UBS is staying neutral on Starbucks, trimming its price target to $94 a share, expecting flat US theme store sales and operating margins around 10% [17][18] - City added Reddit to its positive 90-day catalyst watch, raising its price target to $250 from $220, expecting third quarter earnings to come in significantly above expectations [19] - BNB Paraba upgraded Lululemon to neutral, noting the stock is down more than 50% year to date and negative catalysts are less clear [20]

Core Viewpoint - Raymond James analyst Rick Patel has lowered the price target for Deckers Outdoor (DECK) to $115 from $137 while maintaining a Strong Buy rating on the shares, indicating a cautious outlook despite positive performance indicators [1]. Financial Performance - Deckers reported a Q2 earnings beat across EPS, revenue, and margins, showcasing strong financial performance in the recent quarter [1]. - The company initiated guidance for FY26, which implies a deceleration in growth moving forward [1]. Market Reaction - Following the earnings report, Deckers' stock experienced a decline in after-market trading, reflecting market concerns despite the positive earnings results [1]. Positive Indicators - Underlying demand for HOKA remains strong, suggesting robust consumer interest and potential for continued sales growth [1]. - HOKA's U.S. direct-to-consumer sales improved quarter-over-quarter in Q2, indicating effective sales strategies and consumer engagement [1]. - Stronger UGG wholesale sell-in is viewed as a sign of strength, reflecting positive relationships with retailers and demand for the brand [1]. - International growth is strong, demonstrating that Deckers is successfully applying its U.S. business strategies in global markets [1].

Core Insights - Deckers Outdoor Corporation (NYSE: DECK) reported strong fiscal Q2 results for the period of July-September, highlighting continued strength in its primary brands, HOKA and UGG [1] Financial Performance - The company demonstrated robust performance in its footwear segment, particularly with the HOKA brand, which has been a significant driver of growth [1] Market Position - Deckers maintains a competitive position in the footwear industry, leveraging its brand strength and market presence to capture consumer interest and drive sales [1]

Core Insights - Deckers Outdoor Corporation (NYSE: DECK) reported strong fiscal Q2 results for the period of July-September, highlighting continued strength in its primary brands, HOKA and UGG [1] Financial Performance - The company demonstrated robust performance in its footwear segment, particularly with the HOKA brand, which has been a significant driver of growth [1] Market Position - Deckers continues to capitalize on the growing demand for performance footwear, positioning itself favorably within the competitive landscape of the footwear industry [1]

Core Insights - Deckers Outdoor Corporation (NYSE:DECK) is facing challenges in a competitive market, with Telsey Advisory maintaining a "Market Perform" rating and a revised price target of $105, down from $120 [2][6] - The company's stock price has declined by 12.7% following the release of its fiscal Q2 report, despite exceeding earnings per share and revenue expectations [2][3] - Concerns over slowing growth in the Hoka brand and a softer U.S. market have led to downgrades from multiple Wall Street firms [3][6] Financial Performance - Deckers reported fiscal Q2 earnings of $1.82 per share, surpassing estimates, but the full-year revenue guidance fell short of Wall Street expectations [3][5] - The company now projects full-year sales of approximately $5.35 billion, which is below the consensus forecast by analysts [5] Brand Performance - Hoka's growth is projected to be in the low-teens percentage range for fiscal 2026, a significant decrease from the 24% growth seen in the previous year [4] - Ugg is expected to grow in the low to mid single-digit percentage range, down from a 13% growth rate in the prior year [4] Market Conditions - The U.S. market is described as softer, with CEO Stefano Caroti noting a more cautious consumer base due to tariffs and rising prices [5][6] - The company is considering mitigation strategies, such as promotions, to attract shoppers amid these challenges [5][6]