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Bull of the Day: Skechers (SKX)

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Why Skechers (SKX) Deserves Your Attention

Skechers (SKX), the renowned footwear and apparel provider, is making waves in the market with its remarkable expansion. Despite the dominance of Nike (NKE) and Adidas (ADDYY) in the industry, Skechers has carved out a niche for itself by focusing on comfort and affordability in its products. This has resulted in strong sales and impressive stock performance.

Impressive Performance Overview

Skechers stock has shown significant growth, outperforming both Nike and the broader Shoes and Retail Apparel Markets. Over the past three years, Skechers stock has risen by 47%, surpassing Nike and Adidas. Furthermore, over the last decade, Skechers stock has skyrocketed by over 400%, outperforming its peers and the broader market.

Undervalued Growth & Expansion

Recent years have seen impressive demand for Skechers’ products, leading to its stock outperforming the industry. The company’s earnings are projected to soar by 42% in fiscal 2023, with further growth expected in the following year. Skechers’ sales are also anticipated to rise by 9% this year and 10% in FY24. These figures indicate strong growth and expansion for the company.

Attractive Valuation

Skechers stock is currently undervalued, trading at a lower forward earnings multiple than industry averages. With a forward earnings multiple of 14.5X, Skechers stock offers a discount compared to the industry average of 25.9X and Nike’s 27.2X. This presents a great buying opportunity for investors.

Takeaway

Investors who may have missed out on Skechers’ impressive growth and expansion now have the chance to capitalize on its potential. With a Zacks Rank #1 (Strong Buy) and an overall β€œA” VGM Zacks Styles Scores grade, Skechers stock is well-positioned for continued success. The company’s strong earnings growth, expanding customer base, and attractive valuation make it a promising investment opportunity.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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