On Tuesday I introduced readers to five companies that the market rally of the past six months has left behind. All five companies were candidates for my Roth IRA portfolio.
Today I'm telling you which company will be getting my vote of approval, and I'm backing up my pick by making a bullish CAPScall on my All-Star profile. I'll also offer you a special free report on the one stock our analysts think you need to buy in 2012.
But first, here's why I'm not investing in the other four
Let's make one thing clear: No stock is perfect. So as I'm reviewing my main objections to the following four companies, keep in mind that I still hold them in high regard.
Genealogy website Ancestry.com
And finally, I'm going to follow Warren Buffett's advice to focus on my own realm of competence when it comes to chemical producer Balchem
This won't be an Ugg-ly pick
Therefore, my pick for my Roth IRA this month is Deckers Outdoor
First, I have great respect for CEO Angel Martinez and his talented management team. Martinez has been in the shoe industry for some time -- having worked in the past for Reebok and Rockport and served as CEO of Deckers since 2005. I'm also happy to see that he owns about 240,000 shares of Deckers -- just shy of $15 million in all.
Furthermore, I like where the business is headed. Martinez and his team have done a great job turning both the Ugg and Teva brands into year-round shoe offerings. The problem is that in most stores, the whole line of products isn't being displayed. So Martinez and his team have started building out retail stores -- both domestically and abroad -- to highlight all that these brands have to offer.
Finally, I think the market is missing out on a growth story here. Though the company is only expected to raise earnings by 1% in 2012, that growth is also expected to resume thereafter at a 20% clip. That, combined with the fact that Deckers has beaten analyst estimates every quarter for the past four years, tells me that this company's worth holding onto.
I think Deckers is worthy of your consideration, especially because of its potential growth abroad. If you'd like three more ideas for companies that could soon be stretching abroad, I suggest you check out our special free report: "Three American Companies Set to Dominate the World." Inside, you'll get the names of three familiar U.S. brands that are becoming increasingly influential in the world's emerging markets. Get your copy of the report today, absolutely free!
The Motley Fool owns shares of Heckmann. Motley Fool newsletter services have recommended buying shares of Travelzoo, Balchem, Ancestry.com, and Deckers Outdoor. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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