If you’re out there cheering for Phase 1 of the US-China trade deal, you are not alone. The relief rally on the news has stocks pushing up towards all-time highs again. There is plenty of optimism to go around, but that doesn’t mean you should just blindly jump in and buy everything that moves. Rather, you can lean on the power of the Zacks Rank to find you stocks with strong earnings trends which are likely to continue to benefit from the surging market. One such stock is today’s Bull of the Day Skechers (SKX - Free Report) .
Skechers designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women under the Skechers GO brand worldwide. It operates through three segments: Domestic Wholesale Sales, International Wholesale Sales, and Retail Sales. The company offers casual boots, shoes, and sandals for men; shoes, oxfords and slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals, seasonal sandals and boots, classic and wide fit, and relaxed fit casuals for men and women; and casual athletic line for men and women under the Skechers USA brand.
Skechers is currently a Zacks Rank #1 (Strong Buy). The reason for the top ranking lies in a series of earnings estimate revisions to the upside. Over the last sixty days, analysts have been increasing their earnings estimates on the company. That bullish behavior has pushed up the Zacks Consensus Estimate for the current year from $2.03 to $2.25. Next year’s number has also increased, up from $2.26 to $2.53.
That move in estimates is likely the cause for the stock to come so strong off its 200-day moving average. Since breaking down to that important technical level in late August, the stock is up from a low of $29.01 to over $36 where it trades today. That’s a 25% upside move in less than two months.
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