Why SKX Might Be Your Next Value Pick: A Closer Look at Its Potential

Zacks12-17 23:55

Skechers U.S.A., Inc. SKX stands out as a compelling value play within the Shoes and Retail Apparel industry, trading at a forward 12-month price-to-earnings ratio of 14.20, below the industry average...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2492934239?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/fnGzaNVpKw5fnl._xZKzBg--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/cf9e8a6436d7464a37bf01a1eac217af","is_english":true,"pubTime":"2024-12-17 23:55","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2492934239","market":"us","top_or_hot":-1,"title":"Why SKX Might Be Your Next Value Pick: A Closer Look at Its Potential","media":"Zacks","content":"<div>\n<p>Skechers U.S.A., Inc. SKX stands out as a compelling value play within the Shoes and Retail Apparel industry, trading at a forward 12-month price-to-earnings ratio of 14.20, below the industry average...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-skx-might-next-value-155500801.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why SKX Might Be Your Next Value Pick: A Closer Look at Its Potential</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy SKX Might Be Your Next Value Pick: A Closer Look at Its Potential\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-17 23:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/why-skx-might-next-value-155500801.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Skechers U.S.A., Inc. SKX stands out as a compelling value play within the Shoes and Retail Apparel industry, trading at a forward 12-month price-to-earnings ratio of 14.20, below the industry average...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-skx-might-next-value-155500801.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/why-skx-might-next-value-155500801.html","article_id":"2492934239","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/fnGzaNVpKw5fnl._xZKzBg--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/cf9e8a6436d7464a37bf01a1eac217af"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492934239","pubTimestamp":1734450900,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Skechers U.S.A., Inc. SKX stands out as a compelling value play within the Shoes and Retail Apparel industry, trading at a forward 12-month price-to-earnings ratio of 14.20, below the industry average of 23.44 and the Consumer Discretionary average of 19.36. This undervaluation highlights its potential for investors seeking attractive entry points. SKX's Value Score of A further emphasizes its investment appeal.Shares of the company are currently trading 9.1% below its 52-week high of $75.09 reached on June 12, 2024, making investors contemplate their next move. In the past month, the SKX stock has gained 12.3%, outperforming the industry’s 4.9% growth. The company’s multi-brand portfolio, digital integration, wholesale and direct-to-consumer  strategy, and international expansion have set the stage for long-term growth.SKX closed yesterday’s trading session at $68.23. The stock is trading above its 50 and 200-day simple moving averages of $64.20 and $65.02, respectively, highlighting ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","BK4558":"双十一","GAP":"Gap, Inc","DTC":"Solo Brands, Inc.","BK4094":"服装零售","BK4190":"消闲用品","SKX":"斯凯奇","ANF":"爱芬奇","BK4585":"ETF&股票定投概念","SHOO":"史蒂夫·马登","BK4146":"鞋类"},"translate_title":"为什么SKX可能是您的下一个价值选择：仔细研究其潜力","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DTC":1,"GAP":1,"SHOO":1,"SKX":1,"ANF":0.9},"content_text":"Skechers U.S.A., Inc. SKX stands out as a compelling value play within the Shoes and Retail Apparel industry, trading at a forward 12-month price-to-earnings ratio of 14.20, below the industry average of 23.44 and the Consumer Discretionary average of 19.36. This undervaluation highlights its potential for investors seeking attractive entry points. SKX's Value Score of A further emphasizes its investment appeal.\nImage Source: Zacks Investment Research\nShares of the company are currently trading 9.1% below its 52-week high of $75.09 reached on June 12, 2024, making investors contemplate their next move. In the past month, the SKX stock has gained 12.3%, outperforming the industry’s 4.9% growth. The company’s multi-brand portfolio, digital integration, wholesale and direct-to-consumer (DTC) strategy, and international expansion have set the stage for long-term growth.\nSKX Stock Past-Month Performance\nImage Source: Zacks Investment Research\nSKX closed yesterday’s trading session at $68.23. The stock is trading above its 50 and 200-day simple moving averages of $64.20 and $65.02, respectively, highlighting a continued uptrend.\nSKX Trades Above 50 & 200-Day Moving Averages\nImage Source: Zacks Investment Research\n \nSkechers’ Investments in Infrastructure\nSKX is making significant investments to enhance its global infrastructure, focusing on retail stores, e-commerce platforms and distribution centers. These efforts aim to improve its omnichannel capabilities and expand its DTC business. The company is working to create a seamless shopping experience by integrating physical stores with digital platforms and bolstering its loyalty programs to strengthen customer retention.The company has been confident about continued growth of its wholesale segment throughout fiscal 2024. This optimism is fueled by consistent product demand, and investments in logistics and retailer relationships. In the third quarter of 2024, the wholesale segment experienced strong growth, with sales rising 20.6% to $1.42 billion, driven by a 26% increase in domestic sales and an 18% rise internationally.\nDTC & Global Growth Drive SKX’s Success\nSkechers’ DTC segment reflects the company’s focus on improving consumer engagement, refining the retail experience and leveraging online platforms to expand its reach. The DTC segment achieved strong performance in the third quarter, with sales increasing 9.6% year over year to $931.7 million.The company’s comfort technology has proven to be a key driver of consumer appeal, contributing to strong sales both in-store and online. International sales have also seen substantial year-over-year growth of 16.4%. The same now accounts for 61% of Skechers' total sales, underscoring the importance of its global presence.\nSkechers Raises 2024 Outlook, Targets $10B Sales by 2026\nSKX has raised its fiscal 2024 sales forecast. It now expects revenues between $8.93 billion and $8.98 billion, up from the previously mentioned $8.88-$8.98 billion. This reflects solid growth from the $8 billion reported in fiscal 2023. The company also raised its earnings per share (EPS) guidance to $4.20-$4.25 from the earlier stated $4.08-$4.18, showcasing significant growth from the $3.49 EPS achieved last year.To support its ambitious goal of reaching $10 billion in annual sales by 2026, Skechers anticipates capital expenditure of $375-$400 million. These investments will focus on store openings, strengthening its omnichannel capabilities and enhancing distribution infrastructure.\nSKX Faces Margin Struggles & Setbacks in China\nSkechers has been struggling with soft margins. The company registered an 80-basis-point contraction in the third-quarter gross margin to 52.1% due to higher promotional activities and pricing pressures. SKX anticipates margins to be flat or experience a slight decline in the fourth quarter due to ongoing freight and promotional expenses. Continued margin compression could negatively impact profitability and dampen investor sentiment.In the third quarter, Skechers experienced a notable setback in China, with a 5.7% decline in sales from the previous year. This drop in performance was mainly led by persistent macroeconomic challenges and subdued consumer spending on non-essential goods. Considering China's key role in Skechers' international growth strategy, this decline is alarming.\nFinal Word on SKX\nSkechers shows promising growth potential with its focus on expanding the DTC segment, enhancing global infrastructure and driving international sales. While it is currently trading at a discount, SKX carries a Zacks Rank #3 (Hold), reflecting the company's near-term challenges, such as margin pressures and a slowdown in China. Despite strong demand in key regions and consistent wholesale growth, these factors may limit the upside in the short term. Investors are advised to wait for clearer signs of margin recovery and sustained momentum toward long-term targets before making fresh investments.\nKey Picks\nSome better-ranked stocks are The Gap, Inc. GAP, Abercrombie & Fitch Co. ANF and Steven Madden, Ltd. SHOO.Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the year-ago reported figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.Abercrombie is a specialty retailer of premium, high-quality casual apparel. It carries a Zacks Rank of 2 (Buy) at present.The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 69% and 14.9%, respectively, from the prior-year reported levels. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2.The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 9.8%.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAbercrombie & Fitch Company (ANF) : Free Stock Analysis Report\nSkechers U.S.A., Inc. (SKX) : Free Stock Analysis Report\nThe Gap, Inc. (GAP) : Free Stock Analysis Report\nSteven Madden, Ltd. (SHOO) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492934239"}