Investors Who Bought Deckers Outdoor (NYSE:DECK) Shares Five Years Ago Are Now Up 520%
Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. For example, the Deckers Outdoor Corporation (NYSE:DECK) share price is up a whopping 520% in the last half decade, a handsome return for long term holders. This just goes to show the value creation that some businesses can achieve. It's also good to see the share price up 13% over the last quarter.
We love happy stories like this one. The company should be really proud of that performance!
See our latest analysis for Deckers Outdoor
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Over half a decade, Deckers Outdoor managed to grow its earnings per share at 24% a year. This EPS growth is lower than the 44% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Deckers Outdoor has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Deckers Outdoor stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's good to see that Deckers Outdoor has rewarded shareholders with a total shareholder return of 144% in the last twelve months. That gain is better than the annual TSR over five years, which is 44%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Deckers Outdoor better, we need to consider many other factors. For instance, we've identified 1 warning sign for Deckers Outdoor that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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