In the latest trading session, Skechers (SKX) closed at $69.34, marking a -0.33% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.21%. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.89%.
Shares of the shoe company witnessed a gain of 5.31% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.71% and the S&P 500's loss of 1.56%.
Market participants will be closely following the financial results of Skechers in its upcoming release. The company plans to announce its earnings on February 6, 2025. The company is expected to report EPS of $0.73, up 30.36% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.22 billion, indicating a 13.04% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for Skechers. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Skechers is currently a Zacks Rank #2 (Buy).
Digging into valuation, Skechers currently has a Forward P/E ratio of 14.41. Its industry sports an average Forward P/E of 14.41, so one might conclude that Skechers is trading at no noticeable deviation comparatively.
Meanwhile, SKX's PEG ratio is currently 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Shoes and Retail Apparel industry stood at 1.71 at the close of the market yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
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