When Brian McGough made a long call on Deckers Outdoor (DECK), the stock was trading around $250. By the time he took the long call off, shares had soared to $650. Now, Hedgeye’s veteran Retail analyst suggests shorting the owner of popular shoe brands Ugg and Hoka.
“Right now, you’re seeing ‘peak on peak,’” McGough explains, referring to DECK trading at peak multiples on peak earnings. “That’s why the stock just keeps running. That’s why no one wants to short it, but things can change very quickly, and I think this narrative will change very quickly.”
“I think over the course of a 12-month time period, growth will go from near 30% at Hoka to a single-digit number,” McGough adds.
McGough dove deeper into his short call on DECK during today’s Retail Show, which airs at 11am ET every Monday. Learn more HERE.
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