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Skechers (SKX) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw Skechers (SKX - Free Report) ending at $78.24, denoting a +1.97% adjustment from its last day's close. This change outpaced the S&P 500's 0.53% gain on the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.

Heading into today, shares of the shoe company had gained 14.11% over the past month, outpacing the Consumer Discretionary sector's gain of 2.88% and the S&P 500's gain of 1.24% in that time.

The investment community will be paying close attention to the earnings performance of Skechers in its upcoming release. The company is slated to reveal its earnings on February 6, 2025. The company's upcoming EPS is projected at $0.73, signifying a 30.36% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.21 billion, indicating a 12.73% upward movement from the same quarter last year.

Investors should also note any recent changes to analyst estimates for Skechers. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% lower. Currently, Skechers is carrying a Zacks Rank of #3 (Hold).

Investors should also note Skechers's current valuation metrics, including its Forward P/E ratio of 15.93. This signifies a premium in comparison to the average Forward P/E of 15.45 for its industry.

One should further note that SKX currently holds a PEG ratio of 0.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 1.83.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 146, placing it within the bottom 42% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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