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Skechers Stock a Must Have in Your '18 Portfolio: Here's Why
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Well you might still be working on your strategy for 2018 and hunting for the right stock to build up your portfolio. To make your task a little less exhaustive, we try to bring your focus on one stock that deserves to be part and parcel of your kitty, Skechers U.S.A., Inc. (SKX - Free Report) . The share price of this company is hovering in proximity to its 52-week high, and stock has enough potential to create a new benchmark for itself. So, what makes this designer, developer, marketer and distributor of footwear special? Let’s find out.
A Brief Introspection
Skechers offer a diversified portfolio of brands that includes a wide range of fashion, athletic, non-athletic, and work footwear at compelling prices. We believe that this multi-brand strategy enables the company to roll out new products without cannibalizing existing brands and helps to expand the targeted demographic profile of customers.
The company’s greater emphasis on new line of products, store remodeling projects, cost containment efforts, inventory management, and global distribution platform are the primary catalysts. Skechers’ e-commerce business has also contributed towards sales growth. It currently operates e-commerce sites in Chile, Germany and UK, and has launched additional sites in Spain and Canada.
Skechers’ international business also remains a considerable sales growth driver for the company with Europe and China being the significant market outside the United States. The company is poised to enhance global reach in the footwear market through its distribution networks, subsidiaries and joint ventures (JVs).
Skechers has taken steps that have improved prospects in a big way. But can it offer investors better upside in the days ahead? Here is a short analysis.
Valuation Perspective
A brief glance at some valuation metrics seems to indicate that Skechers has enough room to run in bourses. Further a Value Score of B also indicates the same.
Skechers with a price to sales ratio of 1.5 compared with that of industry’s 2.8 indicate that the stock has enough upside potential. The stock also looks attractive with respect to a forward price-to-earnings (P/E) multiple of 17.6x compared with industry’s 23.9x. A more-or-less similar picture emerges when comparing EV/EBITDA ratios. Skechers holds the edge here with an EV/EBITDA ratio of 13.5 lower than 16.9 for the industry.
We noted that this Zacks Rank #2 (Buy) stock has surged 59.4% in the past three months, compared with the industry’s growth of 26.2%.
Key Picks Apart From Skechers
G-III Apparel Group, Ltd. (GIII - Free Report) delivered an average positive earnings surprise of 6.1% in the trailing four quarters. It has a long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ross Stores, Inc. (ROST - Free Report) delivered an average positive earnings surprise of 5.5% in the trailing four quarters. It has a long-term earnings growth rate of 10% and a Zacks Rank #2.
Wal-Mart Stores, Inc. (WMT - Free Report) delivered an average positive earnings surprise of 2.2% in the trailing four quarters. It has a long-term earnings growth rate of 6.1% and a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Skechers Stock a Must Have in Your '18 Portfolio: Here's Why
Well you might still be working on your strategy for 2018 and hunting for the right stock to build up your portfolio. To make your task a little less exhaustive, we try to bring your focus on one stock that deserves to be part and parcel of your kitty, Skechers U.S.A., Inc. (SKX - Free Report) . The share price of this company is hovering in proximity to its 52-week high, and stock has enough potential to create a new benchmark for itself. So, what makes this designer, developer, marketer and distributor of footwear special? Let’s find out.
A Brief Introspection
Skechers offer a diversified portfolio of brands that includes a wide range of fashion, athletic, non-athletic, and work footwear at compelling prices. We believe that this multi-brand strategy enables the company to roll out new products without cannibalizing existing brands and helps to expand the targeted demographic profile of customers.
The company’s greater emphasis on new line of products, store remodeling projects, cost containment efforts, inventory management, and global distribution platform are the primary catalysts. Skechers’ e-commerce business has also contributed towards sales growth. It currently operates e-commerce sites in Chile, Germany and UK, and has launched additional sites in Spain and Canada.
Skechers’ international business also remains a considerable sales growth driver for the company with Europe and China being the significant market outside the United States. The company is poised to enhance global reach in the footwear market through its distribution networks, subsidiaries and joint ventures (JVs).
Skechers has taken steps that have improved prospects in a big way. But can it offer investors better upside in the days ahead? Here is a short analysis.
Valuation Perspective
A brief glance at some valuation metrics seems to indicate that Skechers has enough room to run in bourses. Further a Value Score of B also indicates the same.
Skechers with a price to sales ratio of 1.5 compared with that of industry’s 2.8 indicate that the stock has enough upside potential. The stock also looks attractive with respect to a forward price-to-earnings (P/E) multiple of 17.6x compared with industry’s 23.9x. A more-or-less similar picture emerges when comparing EV/EBITDA ratios. Skechers holds the edge here with an EV/EBITDA ratio of 13.5 lower than 16.9 for the industry.
We noted that this Zacks Rank #2 (Buy) stock has surged 59.4% in the past three months, compared with the industry’s growth of 26.2%.
Key Picks Apart From Skechers
G-III Apparel Group, Ltd. (GIII - Free Report) delivered an average positive earnings surprise of 6.1% in the trailing four quarters. It has a long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ross Stores, Inc. (ROST - Free Report) delivered an average positive earnings surprise of 5.5% in the trailing four quarters. It has a long-term earnings growth rate of 10% and a Zacks Rank #2.
Wal-Mart Stores, Inc. (WMT - Free Report) delivered an average positive earnings surprise of 2.2% in the trailing four quarters. It has a long-term earnings growth rate of 6.1% and a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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