Chicago, IL – January 15, 2025 – Today, Zacks Investment Ideas feature highlights Deckers Outdoor DECK, United Airlines UAL and Tapestry TPR.
These 3 Buy-Rated Stocks Are Scraping All-Time Highs
Stocks making new highs tend to make even higher highs, particularly when a company’s outlook remains positive.
And recently, several stocks, including Deckers Outdoor, United Airlines and Tapestry, have displayed bullish momentum, with shares of each hovering at all-time highs.
All three sport a favorable Zacks Rank, reflecting optimism among analysts. Should investors tap into the momentum? Let’s take a closer look at how each stacks up.
Deckers Sees Continued Brand Momentum
Deckers Outdoor is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. The stock sports a Zacks Rank #2 (Buy), with EPS expectations creeping higher nearly across the board over recent months.
Solid quarterly releases have been driving the positive outlook, with the company exceeding the Zacks Consensus EPS estimate by an average of 40% across its last four releases. Concerning headline figures, EPS shot 40% higher year-over-year alongside 20% growth in sales, with DECK also upping its FY25 sales outlook following the release.
HOKA and UGG brand momentum remains strong, with the company experiencing strong consumer demand yet again. Deckers Outdoor also saw margin expansion throughout the period, continuing an established trend from recent periods.
UAL Shares Double in Value
United Airlines’ strong price action has also been aided by quarterly releases, with shares soaring following the release of its latest print. The company’s next quarterly release is expected soon on January 21st, with current consensus expectations suggesting 49% EPS growth on 5% higher sales.
The outlook for the quarter to be reported remains positive, with the $2.98 per share expected up modestly over the last several months. Top line revisions have also remained constructive, with the $14.4 billion expected up marginally over the same time period.
Year-over-year capacity growth of 4.1% was a nice highlight from the latest print, with the company also authorizing a fresh $1.5 billion share repurchase program. The buyback announcement is a big deal for shareholders, given that it’s the first since suspending its buyback program in 2020.
Upon stretching out the time frame, we can see that shares have more than doubled over the last six months, outperforming the general market handily.
Tapestry Acquires More Than a Million Customers
Tapestry, formerly Coach, is a designer and marketer of fine accessories and gifts for women and men. A few of its recognizable brands include Coach, Kate Spade, and Stuart Weitzman. The luxury retailer’s EPS outlook has brightened nicely across the board in recent months, landing it into the coveted Zacks Rank #1 (Strong Buy).
Strong results from its Coach brand helped it exceed prior revenue and earnings forecasts set by the company, also raising its full-year outlook. Margin expansion and strong cash generation aided the results nicely, also acquiring an impressive 1.4 million new customers in North America throughout the period.
Like DECK, the margins picture here has continued to be highly positive, as shown below. Tapestry’s gross margin reached 75.3% throughout its latest period, a big improvement from the 72.5% print in the year-ago period.
Bottom Line
Though pockets of the market got a bit sluggish to round out 2024, all three stocks above continued to charge higher on the back of strong EPS outlooks stemming from quarterly results.
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