Here's Why Skechers (SKX) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Skechers (SKX)
Founded in 1992 and headquartered in Manhattan Beach, California, Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children in the United States and overseas under the SKECHERS name, as well as under several uniquely branded names.
SKX is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 16.4X for the current fiscal year compared to the Shoes and Retail Apparel industry's P/E of 15.2X. Additionally, SKX has a PEG Ratio of 1 and a Price/Cash Flow ratio of 14X. Value investors should also note SKX's Price/Sales ratio of 1.2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.06 to $4.08 per share. SKX has an average earnings surprise of 34.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding SKX to their portfolios.
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Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
