Deckers (DECK) stock tanked some 13% on Oct. 24 after the footwear designer and distributor posted a market-beating Q2 but issued disappointing guidance for the future.

The company’s downwardly revised forecast for $5.35 billion in full-year revenue (below analyst estimates) reflects growing concerns about consumer behavior in response to tariffs and price increases.

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Following the post-earnings plunge, Deckers shares are down nearly 60% versus their year-to-date high set in late January.

Famed investor Jim Cramer recommends buying the post-earnings dip in DECK stock, especially if you’re in it for the long haul.

According to him, the NYSE-listed firm is being punished more than it deserves. At current levels, the “Mad Money” host sees much of the downside as priced in already.

Deckers stock is currently trading at a forward price-earnings (P/E) ratio of less than 16x, significantly below 42x for Nike (NKE) at the time of writing.

Cramer expects seasonal tailwinds to benefit the California-based company as well, noting “UGG sales could snap back if you get a really cold winter” heading into 2026.

DECK shares appear attractive as a long-term holding at current levels also because the company’s international performance remains robust.

In Q2, the footwear specialist saw an impressive 29.3% increase, suggesting strong global market potential, especially given the management is committed to retail expansion, with plans of opening new stores across various markets.

Deckers’ strong market presence, combined with strategic positioning in both metropolitan areas and smaller markets, provides a buffer against regional economic fluctuations as well.

Put together, it’s reasonable to conclude that the magnitude of the Deckers stock price decline appears disproportionate to the firm’s actual business performance, suggesting a potential overreaction to conservative guidance.

Wall Street analysts also agree with Cramer’s positive view on DECK stock, especially now that it’s tanked to a compelling valuation.

According to Barchart, the consensus rating on Deckers shares remains at “Moderate Buy” with a mean target of nearly $127 indicating potential upside of as much as 40% from here.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com