Shares of Deckers (DECK) gained traction Monday after an analyst upgrade cited favorable pricing and upcoming fall weather as fueling sales of the company's Uggs footwear.
The stock price of Deckers jumped 2.57% to $137.74 after Pivotal Research Group upgraded its outlook on the footwear company to buy from its previous hold rating.
Pivotal noted upcoming fall weather that is expected to be favorable for hiking and outdoor activities, with Deckers' Hoka running shoes also seen as picking up sales momentum.
Deckers' current stock price, which is well below its 52-week high of above $180, also provides a potential buying opportunity for investors, Pivotal analysts stated.
Other analysts are also increasingly bullish about the prospects for Deckers' stock, Zacks Investment Research noted.
Analysts surveyed by Zacks have raised their earnings estimates for Deckers for fiscal 2020 and 2021 by 20 cents and 19 cents a share, respectively, over the past month, the investment research firm noted on Aug, 14.
The Zacks' consensus estimate for Deckers' earnings now stands at $8.65 a share for 2020 and $9.47 a share for 2021.
In its first-quarter results for fiscal 2020, Deckers posted its 10th straight quarter of positive sales and earnings surprises.
"DECK appears to be a solid bet, thanks to its sturdy efforts to remain on growth trajectory," Zacks noted.