Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into three sports-based retail stocks to buy right now. We take a look at why Deckers Outdoor Corporation DECK, Columbia Sportswear COLM, and Under Armour UAA are all Zacks Rank #2 (Buy) stocks right now.
Industry giants like NKE, Adidas ADDYY, and red-hot Lululemon LULU grab a lot of attention for their growth. Meanwhile, Wall Street and investors have for years watched closely to see how retail bellwethers from Walmart WMT to Macy’s M react to Amazon’s AMZN encroachment and e-commerce expansion. More traditional sports-focused retailers like Dick’s Sporting Goods DKS and Foot Locker FL have also been impacted by changes in shopping habits. But while some retailers seemingly fail to adapt, others look strong at the moment.
Deckers Outdoor owns Teva, Sanuk, and Ugg, with most of its sales coming from its Ugg brand. The company is coming off a better-than-projected fourth quarter of fiscal 2019, which included blowout earnings. The firm’s HOKA ONE ONE brand was a fourth quarter and full-year standout, with sales up over 45% last year. DECK’s valuation picture also appears pretty solid at the moment.
Moving on, shares of Columbia are up 70% over the last two years. COLM owns its namesake brand as well as Mountain Hardware, Sorel, and others. Today the firm competes mostly with V.F. Corporation’s VFC The North Face, Patagonia, and Canada Goose GOOS. The firm’s Q1 revenue jumped 8% to $654.6 million. Columbia is also a dividend payer that boasts some strong top and bottom line growth estimates.
Lastly, Under Armour is a firm that has seen its stock price tank over the last five years as it fails to adapt to some of the more popular trends in retail. With that said, UAA stock is up big in 2019 and its earnings outlook appears to be headed in the right direction as some of its initiatives start to pay off.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Foot Locker, Inc. (FL) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
Macy's, Inc. (M) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Adidas AG (ADDYY) : Free Stock Analysis Report
V.F. Corporation (VFC) : Free Stock Analysis Report
Columbia Sportswear Company (COLM) : Free Stock Analysis Report
Under Armour, Inc. (UAA) : Free Stock Analysis Report
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