NEW YORK (TheStreet) -- TheStreet's Jim Cramer talks about Lululemon's (LULU) earnings and says he learned during his time on the hedge fund desk that if a stock moves up double-digit percentage after it beats trimmed estimates, then investors missed their chance.
Cramer thinks the stock could rise for a second day, but he says Lululemon's story is the 5% comparable-store sales decline. He'd like to see more than just one quarter of negative comps trying to go positive, and he does not see that here.
Cramer suggests Deckers Outdoor (DECK) if investors want to play yoga stocks. The company has a yoga shoe that reminds Cramer of the aerobics shoe that Reebok had that took it from $10 to $100, and he likes Deckers better than Lululemon.
TheStreet Ratings team agrees, as it rates Deckers a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DECKERS OUTDOOR CORP (DECK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: DECK Ratings ReportLULU data by YCharts
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