Jim Cramer Endorses Deckers Outdoor Stock

On a recent episode of CNBC's "Mad Money Lightning Round," well-known financial commentator Jim Cramer expressed his positive outlook on Deckers Outdoor (NYSE: DECK). He advised investors to consider purchasing the stock if it is priced below $120 per share, emphasizing the importance of creating a strong investment foundation by saying, "Next buy, 100. Get a good basis."

When it comes to the company's earnings, Deckers Outdoor reported remarkable performance on January 30, revealing quarterly earnings of $3 per share. This figure surpassed the analyst consensus estimate, which was $2.55 per share. The company also achieved quarterly revenue of $1.83 billion, which was above the anticipated $1.73 billion and represented a significant increase compared to last year's revenue of $1.56 billion during the same period.

Stefano Caroti, CEO of Deckers Outdoor, remarked, "Deckers posted exceptional results in the third quarter, delivering record quarterly revenue, gross margin, and earnings." This positive sentiment reflects the company's strong operational performance and future potential.

Additionally, Cramer mentioned Gladstone Land (NASDAQ: LAND) during the segment but suggested a different option for investors by stating, "I'm going to see your Gladstone Land and raise you with Realty Income (NYSE: O)." This comment indicates Cramer's preference for Realty Income over Gladstone Land.

Gladstone Land recently reported earnings of 9 cents per share on February 19, falling short of the analyst consensus estimate of 11 cents per share. However, their quarterly sales reached $21.10 million, which exceeded expectations of $20.45 million.

Price Action:

• Deckers Outdoor shares increased by 3.3%, closing at $119.05 on Wednesday.
• Gladstone Land shares saw a slight decrease of 0.6%, finishing the session at $10.70.
• Shares of Realty Income dropped by 0.9%, ending at $56.44.

Conclusion

Jim Cramer’s recommendation for Deckers Outdoor points toward a promising investment opportunity, especially considering their impressive earnings and growth in revenue. Investors looking for potential stock buys may want to keep an eye on Deckers Outdoor as well as the other alternatives mentioned in the segment.

Cramer, Stocks, Earnings