The most recent trading session ended with Skechers (SKX) standing at $62.71, reflecting a -0.73% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 0.28%.
The shoe company's stock has dropped by 7.02% in the past month, falling short of the Consumer Discretionary sector's gain of 7.13% and the S&P 500's gain of 3.48%.
The investment community will be closely monitoring the performance of Skechers in its forthcoming earnings report. The company is scheduled to release its earnings on October 24, 2024. The company is expected to report EPS of $1.15, up 23.66% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.32 billion, indicating a 14.76% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.13 per share and revenue of $8.95 billion, indicating changes of +18.34% and +11.85%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Skechers. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.5% lower within the past month. At present, Skechers boasts a Zacks Rank of #4 (Sell).
In the context of valuation, Skechers is at present trading with a Forward P/E ratio of 15.28. This indicates a discount in contrast to its industry's Forward P/E of 18.8.
It is also worth noting that SKX currently has a PEG ratio of 0.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Shoes and Retail Apparel was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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