SKX - Skechers U.S.A., Inc.
| Previous Close | 26.95 |
| Open | 26.50 |
| Bid | 0.00 x 2200 |
| Ask | 26.69 x 1000 |
| Day's Range | 25.99 - 26.91 |
| 52 Week Range | 21.45 - 43.08 |
| Volume | 3,872,622 |
| Avg. Volume | 2,634,663 |
| Market Cap | 4.202B |
| Beta (3Y Monthly) | 0.65 |
| PE Ratio (TTM) | 22.29 |
| EPS (TTM) | 1.19 |
| Earnings Date | Feb 6, 2019 - Feb 11, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 31.92 |
- MarketWatch•21 hours ago
No, Vans parent VF Corp. isn’t going to buy Skechers
VF Corp.’s Chief Executive Steven Rendle used the company’s third-quarter earnings call to quiet chatter about adding Skechers Corp. to the company’s portfolio, saying that one can’t believe everything they hear. “Obviously, M&A continues to be our number one choice about capital allocation,” Rendle said on the call, according to a FactSet transcript. Talk about a possible Skechers (SKX) purchase bubbled up on Thursday.
- InvestorPlace•3 days ago
Potential Buyout Is Another Reason to Like Skechers Stock
M&A activity in the financial markets is picking up, as record levels of corporate cash converged on a steep market sell-off in late 2018 to create a plethora of acquisition opportunities, and corporations took advantage. Thus, it's no surprise that M&A rumors have started to swirl around athletic apparel brand Skechers (NYSE:SKX). Specifically, there has been chatter that global apparel giant V.F. Corporation (NYSE:VFC) is interested in buying Skechers at $40 per share. Skechers stock trades just north of $25. Naturally, the stock bounced higher on those rumors. Wells Fargo is skeptical such an acquisition will actually happen. Their rationale -- that Skechers doesn't really fit into the VFC wheelhouse -- makes sense. VFC's biggest brands include names like Vans, Timberland and North Face. Those have some, but minimal, overlap and synergies with Skechers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As such, a VFC acquisition of Skechers seems unlikely at this point in time. But, that doesn't mean Skechers stock won't be acquired in 2019 at a big premium. Instead, this rumor goes to show that there is high M&A interest related to Skechers, as there should be. The company and stock have "buyout target" written all over them. Thus, as M&A activity picks up in 2019, Skechers stock could very likely be acquired by a bigger retail company looking to expand into the athletic apparel space. ### VFC May Not Be the Buyer The rumor floating around is that VFC will buy Skechers at $40 per share. Skechers stock initially traded higher on the news. Then, it gave up some of those gains as investors questioned the legitimacy of the rumors. * 7 Retail Stocks to Buy for the Rise of Menswear Investors are right to express skepticism. VFC has built a portfolio of global apparel brands through acquisitions. In the 1960's, VFC acquired leading jeans brand Lee. Over the next fifty years, VFC acquired Wrangler, Bulwark, North Face, Nautica, Vans, Reef, Timberland, and many, many more. This M&A activity hasn't slowed recently. Over the past decade, VFC has made numerous brand acquisitions, both small and large. But, Skechers doesn't really fit into the VFC wheelhouse. Skechers is an athletic apparel brand which rubs elbow with Nike (NYSE:NKE), Adidas (OTCMKTS:ADDYY), and Under Armour (NYSE:UAA). There isn't much overlap between Skechers and North Face, or Skechers and Vans. Granted, VFC could be looking to make a play in an entirely untapped mainstream athletic apparel market. That would make sense. After all, the athletic apparel market is where all the growth is today. Skechers gives them a cheap entry into that big growth market. But it isn't likely, because VFC usually acquires companies within its wheelhouse. As such, VFC probably won't buy Skechers any time soon. ### But Skechers Is a Buyout Target Although VFC likely won't be the buyer, Skechers stock is a serious buyout target in 2019. The company has all the characteristics you'd want in a buyout target. Skechers has grown revenues at a consistent double-digit rate over the past five years, and has broad and global exposure to the rapidly growing athletic apparel market. Gross margins are high, and have consistently trended higher over the past five years. The brand clearly has staying power in the mid-price sneaker market, which is largely ignored by other athletic apparel companies. The domestic business is stable, while the international business is red hot. In sum, this is a growth company with staying power and high margins in a growth industry. Those are attractive features to a potential suitor. Skechers stock also has ideal characteristics for a buyout target. There's a lot of cash and short-term investments on the balance sheet (~$900 million), and hardly any debt (less than $70 million in long-term debt). Thus, the company has a net cash position of roughly $800 million, meaning the $4.2 billion market cap underlying Skechers stock translates into a $3.4 billion enterprise value. Sales over the past twelve months measure $4.5 billion, while EBITDA is around $520 million. Thus, Skechers stock is trading at roughly 0.7X EV/Sales and ~6.4X EV/EBITDA. Those are anemic multiples for a double-digit-growth company. A potential suitor could pay a huge premium for Skechers stock, and still only pay just over 1X EV/Sales. Overall, Skechers the company has buyout target written all over it. So does Skechers stock. As such, while VFC may not be the buyer, that doesn't mean the idea itself is off the table in 2019. ### Bottom Line on SKX Stock Skechers is a solid and stable growth company with a dramatically undervalued stock. That combination naturally attracts M&A interest. If Skechers stock remains this cheap for much longer, there will eventually be a takeout offer -- and likely at a huge premium. As of this writing, Luke Lango was long SKX and NKE. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post Potential Buyout Is Another Reason to Like Skechers Stock appeared first on InvestorPlace.
- American City Business Journals•3 days ago
Skechers acquisition rumors fuel stock rise
Rumors that Skechers U.S.A. Inc. was in acquisition talks with V.F. Corp. sent shares of Manhattan Beach, California-based Skechers rising in Thursday trading. Shares in Skechers (NYSE: SKX) rose more than 6 percent Thursday after an unconfirmed report surfaced that North Carolina-based V.F. Corp. (NYSE: VFC), maker of Vans and Timberland shoes, was interested in buying Skechers. StockTraderNet wrote that "V.F. Corporation (VFC) is in advanced talks to acquire Skechers USA Inc. Hearing the acquisition price represents a total enterprise value of about $6.5 billion or $40 per share." That news sent shares in Skechers up $1.60, rising 6.31 percent to close at $26.95.
- Zacks•3 days ago
Skechers (SKX) in Focus: Stock Moves 6.3% Higher
Skechers (SKX) shares rose more than 6% in the last trading session, amid huge volumes.
- Schaeffer's Investment Research•4 days ago
Skechers Options Gain Traction as Buyout Buzz Swirls
Short-term SKX volatility expectations are soaring
- Business Wire•4 days ago
Skechers Returns to Chevron Houston Marathon and Aramco Houston Half Marathon for Sixth Year as Footwear and Apparel Sponsor
Skechers Performance Elite Athletes Meb Keflezighi and Weldon Kirui set to Appear at Houston Marathon Health & Fitness EXPO
Market Realist•4 days agoNike: Analysts’ Recommendations
Analyzing Nike’s Growth Prospects in 2019(Continued from Prior Part)Analysts recommend a “buy”As of January 14, among the 37 analysts covering Nike (NKE) stock, 68% recommend a “buy,” 30% recommend a “hold,” and 2% recommend a
- Business Wire•5 days ago
Skechers D’Lites X One Piece Collection Introduces Second Series of Limited Edition Styles
After landing as one of the hottest footwear collaborations of 2018, the Straw Hat Pirates are back for a second limited edition series in the acclaimed Skechers D’Lites X One Piece collection. This ongoing collaboration unites returning and new characters from Toei Animation’s anime series with the next generation Skechers D’Lites 3.0—an evolution of the footwear company’s iconic chunky sneaker. Returning from the first series are new designs featuring Monkey D. Luffy and Trafalgar Law.
Market Realist•5 days agoComparing Nike’s PE Ratio with Its Peers
Analyzing Nike’s Growth Prospects in 2019(Continued from Prior Part)Forward PE ratiosOn January 14, Nike’s (NKE) 12-month forward PE ratio was 25.8x.Under Armour (UAA), Skechers (SKX), Columbia Sportswear (COLM), and Lululemon Athletica (LULU)
- Market Realist•5 days ago
What Could Drive Nike’s Top Line in 2019?
Analyzing Nike’s Growth Prospects in 2019Future expectationsNike (NKE) is one of the most well-known sports footwear and apparel brands in the world.For the third quarter of fiscal 2019, Wall Street analysts expect Nike’s revenues to rise 6.3%
- Business Wire•7 days ago
Skechers Performance™ Elite Athlete Matt Kuchar Wins Sony Open in Hawaii
Skechers USA, Inc. (SKX), celebrates Olympic medalist and Skechers Performance ambassador Matt Kuchar’s victory at the Sony Open at Waialae Country Club yesterday in Honolulu. Kuchar—who competes wearing Skechers GO GOLF footwear—finished at 22 under par overall for his second title this season, moving him up seven slots to 2nd place in season points for the FedEx Cup. “It was a great week, and I have a lot of confidence in my game,” said Matt Kuchar.
- Business Wire•7 days ago
Skechers Breaks Ground on Corporate Headquarters Expansion
Footwear industry leader Skechers USA, Inc. (SKX) on Friday celebrated a new era and commitment to global growth and its hometown community by breaking ground on an expansion of the Skechers Corporate Headquarters that will span several adjacent buildings in Manhattan Beach and Hermosa Beach, California. The project will more than double the Company’s office, design and showroom space in the South Bay, bringing it to just over 330,000 square feet.
- Market Realist•7 days ago
Under Armour’s Price-to-Earnings versus Peers’
Under Armour’s 2019 Growth Prospects (Continued from Prior Part) ## Forward PE multiples On January 10, Under Armour’s (UAA) 12-month forward PE ratio was 58.4x. It’s trading at a higher PE multiple than its peers. Nike (NKE), Columbia Sportswear (COLM), Skechers (SKX), and Gap (GPS) have PE ratios of ~26.0x, 20.1x, 12.5x, and 9.6x, respectively. ## EPS projections for Under Armour For 2018, Wall Street analysts expect Under Armour’s adjusted EPS to increase 15.8% YoY to $0.22. For 2018, Under Armour’s management forecast its adjusted EPS at $0.21–$0.22. Earlier, it guided for adjusted EPS of $0.19–$0.22. Increases in sales could offer support to the bottom line amid rising expenses. For 2018, Under Armour’s management expects the year-end inventory to be down in a mid-single-digit rate. Also, driven by restructuring measures undertaken in 2017 and 2018, Under Armour projects annual savings of $200 million from 2019 to 2023. For 2019, analysts expect the company’s adjusted EPS to rise 50% YoY to $0.33. ## A look at EPS projections for peers Analysts expect Nike’s adjusted EPS to rise 10.5% YoY to $2.64 in fiscal 2019. For fiscal 2020, its EPS are expected to increase by 18.6% YoY to $3.13. For Columbia Sportswear, analysts’ adjusted EPS growth estimate for fiscal 2018 stands at 21.5% to $3.62. For fiscal 2019, its EPS are forecast to rise 12.4% to $4.07. For fiscal 2018, Wall Street projects that Skechers’ adjusted EPS will increase 3.8% to $1.85. For fiscal 2019, its EPS are expected to rise 8.0% to $1.99. For Gap’s fiscal 2018, analysts project EPS to be up 20.2% to $2.56, and for fiscal 2019, EPS is forecast to increase 3.5% to $2.65. Browse this series on Market Realist: * Part 1 - What to Expect from Under Armour’s 2019 Revenue Growth * Part 2 - Will Under Armour’s Margin and Bottom Line Impress in 2019? * Part 3 - What Wall Street Analysts Are Saying for Under Armour
- Market Realist•7 days ago
What Wall Street Analysts Are Saying for Under Armour
Under Armour’s 2019 Growth Prospects (Continued from Prior Part) ## On the sidelines As of January 10, of the 33 analysts covering Under Armour (UAA) stock, 18% recommend a “buy” and another 27% gave it a “sell” rating. The majority—55%—of analysts have retained their “hold” rating for Under Armour stock. Under Armour is working on expanding its international business and developing its direct-to-customer business to drive its top-line growth. However, Under Armour has stated that the North America segment’s performance would be muted. This segment contributes a major chunk of overall sales. Under Armour’s stock gained 22.5% in 2018. As of January 10, the stock has gained 8.7%. It last closed trading at $19.20. In January so far, we’ve seen two price target changes for Under Armour. On January 2, Wells Fargo slashed its price target to $20.00 from $23.00. On January 7, UBS lowered the price target to $20.00 from $24.00. At present, analysts’ 12-month average price target for Under Armour’s stock is $20.41, which reflects 6.3% upside to the stock’s price on January 10. ## Ratings for peers For Nike (NKE), out of the 37 analysts covering Nike stock, ~68% have a “buy” rating. Another 30% have rated the stock a “hold.” On January 9, HSBC upgraded Nike (NKE) to “buy” from “hold” and raised its target price to $95.00 from $92.00. However, Baird cut its rating for Nike to “neutral” from “outperform.” Analysts’ 12-month average target price for NKE stock is $86.49, which reflects a 13.2% upside based on its January 10 stock price. Of the 16 analysts covering Columbia Sportswear (COLM), 50% gave it a “buy” rating while the remainder rated it a “hold.” Columbia Sportswear’s mean target price is $101.40, indicating a 23.9% upside. 50% of the 14 analysts covering Skechers’ (SKX) stock have provided a “buy” rating, and the rest rated it a “hold.” On January 2, Wells Fargo lowered its price target for SKX to $26.00 from $30.00. On January 7, UBS also lowered its price target to $32.00 from $35.00. Skechers’ 12-month average target price is $31.92, indicating a 28.2% upside. Continue to Next Part Browse this series on Market Realist: * Part 1 - What to Expect from Under Armour’s 2019 Revenue Growth * Part 2 - Will Under Armour’s Margin and Bottom Line Impress in 2019? * Part 4 - Under Armour’s Price-to-Earnings versus Peers’
- Market Realist•10 days ago
What to Expect from Under Armour’s 2019 Revenue Growth
Under Armour’s 2019 Growth Prospects ## Future expectations For the fourth quarter of 2018, Wall Street analysts expect Under Armour’s (UAA) revenue to rise 1.0% year-over-year or YoY to $1.38 billion. For 2018, analysts forecast revenue growth of 4.1% YoY to $5.18 billion. However, for 2019, analysts expect revenue to increase 4.1% to $5.39 billion. Amid North American troubles, the company’s top-line growth is expected to find a cushion in international, direct-to-consumer, and wholesale operations growth. For 2018 and 2019, Under Armour management expects revenue to increase 3%–4%. It has projected revenue to return to a low-double-digit growth rate by 2023. ## North America to remain under pressure The North America segment, which is the largest contributor to total revenue for Under Armour, has been in trouble for some time. In the third quarter of 2018, revenue declined 2%. For 2018, the North American market is projected to face a low-single-digit decline. For 2019, revenue from North America is forecast to remain the same on a YoY basis. At an investor meeting in December, Under Armour projected its five-year (2018–2023) revenue CAGR for North America at 1%–3%. In contrast, for international operations, the five-year revenue CAGR is projected at 17%–19%. By 2023, though North America’s share would fall to 56% from 73% at present, it would remain the biggest contributor to revenue. Under Armour expects full-price sales to improve its performance in the region. It has also undertaken extensive inventory management initiatives for North America. ## Expectations for peers For fiscal 2019 (ending in May), analysts forecast Nike’s (NKE) revenue to grow 7.8% to $39.23 billion. For Skechers’ (SKX) 2018, analysts project sales growth of 12.0% YoY to $4.66 billion. Continue to Next Part Browse this series on Market Realist: * Part 2 - Will Under Armour’s Margin and Bottom Line Impress in 2019? * Part 3 - What Wall Street Analysts Are Saying for Under Armour * Part 4 - Under Armour’s Price-to-Earnings versus Peers’
Market Realist•11 days agoNike’s Rating: Upgrade from HSBC, Downgrade from Baird
On January 9, HSBC upgraded Nike (NKE) to “buy” from “hold.” The target price increased to $95.00 from $92.00. However, Baird lowered its rating for Nike to “neutral” from “outperform.” The stock fell marginally (0.2%) and closed trading at $76.59. So far in January, Nike stock has gained 3.3% as of January 9. In 2018, the stock gained 18.5%.
- InvestorPlace•12 days ago
7 Retail Stocks With Worrisome Exposure to China
The world's largest consumer technology company, Apple (NASDAQ:AAPL), fired a warning shot heard around the world that their biggest product, the iPhone, was seeing much slower-than-expected growth in one of its biggest markets, China. Investors everywhere freaked out, with the S&P 500, Dow Jones and Nasdaq all dropping well over 2% in response. The big takeaway is that the end of quantitative easing and rising U.S.-China trade war tensions are combining to create major headwinds for the global economy. This is especially true in China, where the 2018 slowdown is threatening to get worse in 2019. That's bad news for stocks with exposure to China. Unfortunately, there are a bunch of stocks out there with ample exposure to the world's second-largest economy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Specifically, there's a bunch of retail stocks that have a worrisome level of sales exposure to China. Wells Fargo recently compiled a list of retail stocks in their coverage universe that have exposure to China. The takeaway? There's more than a handful of retail stocks with double-digit sales exposure to China. * 10 Virtual Assistants for the Future of Smart Homes With that in mind, let's take a look at seven retail stocks with worrisome exposure to China. Source: Shutterstock ### Adidas (ADDYY) Sales Exposure to China: 18% Near-term outlook: Although this was once the hottest athletic apparel company in the world, Adidas (OTCMKTS:ADDYY) is now facing numerous headwinds that plague the stock's near-term outlook. First and foremost, the company has double-digit sales exposure to China, which is by far the most exposure among big athletic apparel brands. Second, the iconic brand is finally losing steam amid rising competition, and that is showing up in slower sales growth numbers. This trend will persist, and it will keep ADDYY stock lower for longer. Long-term outlook: The long-term outlook for Adidas stock is much more favorable than its near-term outlook. Trends in fashion change all the time. This current trend wherein Adidas is losing steam will not last forever. Eventually, it will be replaced by another trend where Adidas is back in fashion. Big picture, this is a long-term winner that you want to buy when the trend is your friend, and sell when the trend goes the other way. Source: priceminister via Flickr ### Tiffany (TIF) Sales Exposure to China: 16% Near-term outlook: The near-term outlook for shares of Tiffany (NYSE:TIF) is not good. Not only does the company have 16% exposure to China's rapidly slowing economy, but TIF also sells the sort of premium product (jewelry) that consumers can go a long time without buying if times get tough. Indeed, during prior economic slowdowns (2015-16 and 2008-09), TIF stock dramatically underperformed the market due to the company's economic slowdown sensitivity. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors Long-term outlook: The long-term outlook for TIF stock is much more favorable. Although near-term demand is sensitive to economic slowdowns, long-term demand is stable due to the enduring and timeless appeal of jewelry. Also, within this enduring appeal jewelry industry, Tiffany has separated itself among millennial buyers, thus giving the company a healthy long-term demand outlook. In five years, I think $6.50 in EPS in achievable, driven by low single-digit revenue growth and some margin expansion. A normal 20 multiple on that implies a long-term price target of $130, representing healthy upside in a multi-year window. Source: Shutterstock ### Nike (NKE) Sales Exposure To China: 15% Near-term outlook: At first glance, the near-term outlook for Nike (NYSE:NKE) stock isn't all that great. A 15% sales dependence to the rapidly slowing China economy is not good. But, we just heard from Nike two weeks ago, and they said everything was great in China. Sales growth in China accelerated from 20% in Q1, to 31% in Q2. Thus, whatever is affecting Apple in China, is not affecting Nike. This company is firing on all cylinders in China, and everywhere else too (growth accelerated across all geographies last quarter). Thus, the near-term outlook for NKE stock is actually quite favorable. Long-term outlook: The long-term outlook for Nike stock is also quite favorable. Over the past twenty years, Nike has time and time again flexed its muscles as the most dominant and unparalleled juggernaut in the athletic apparel industry. They've squashed competitive threats, continually come out with the best products, and always sign the best athletes. Also, this entire space is growing rapidly due to the widespread emergence of healthy and active lifestyle trends. Altogether, this is a very solid company with the potential to hit $5 EPS in five years. A historically average 25 multiple on that implies a long-term price target of $125. That's almost double the current price. Source: McArthurGlen Designer Outlet via Flickr ### Skechers (SKX) Sales Exposure to China: 14% Near-term outlook: The near-term outlook for Skechers (NYSE:SKX) stock is mixed. On one hand, you have a company with slowing growth rates and struggling margins that have sizable exposure to the slowing Chinese economy. On the other hand, you have a company who might win in a slower growth environment due to its lower-priced shoes, and you have a stock that is dirt cheap and rubbing up against a critical support level at $20. Thus, while a near-term bounce-back looks unlikely, further downside also seems fundamentally and technically limited. * 7 Dow Jones Stocks Set to Charge Higher Long-term outlook: The long-term outlook for Skechers stock is quite promising at current levels. Skechers has carved out a solid niche for itself in the global athletic apparel industry as a leading provider of high quality, mid-priced athletic apparel shoes for the largely off-trend demographic. This strategy has powered consistent double-digit global sales growth over the past several years, and continues to power high single-digit sales growth today. This growth has also happened alongside healthy gross margin expansion. As such, if these trends remain intact over the next several years, SKX stock is simply too cheap here at 11X forward earnings, and will ultimately head higher in a multi-year window. Source: Joe King via Flickr (Modified) ### Fossil (FOSL) Sales Exposure to China: 12% Near-term outlook: The near-term outlook for traditional watch giant turned wearables company Fossil (NASDAQ:FOSL) is actually quite favorable. Apple warned about slowing iPhone demand. But, they also said that Apple Watch demand remained robust. That is a bullish read for Fossil, whose entire turnaround narrative is predicated on robust growth in the hybrid smartwatch category. Recent numbers from Fossil indicate that this trend remains alive and well. But, the stock has been beaten up in a big way over the past few months due to concerns that the hybrid smartwatch market is struggling. Fossil's next quarterly numbers should ease those fears, and cause a pop in FOSL stock. Long-term outlook: The long-term outlook here is favorable, too. Fossil used to be the face of the huge traditional watch market. That market has shrunk considerably due to the onset of smartwatches. While smartwatch functionality is nice to have, traditional watch aesthetic will also likely never go away. As such, Fossil is making a comeback through hybrid smartwatches, which is essentially the integration of traditional watch aesthetic with smartwatch functionality. This market will be very big one day, and Fossil will be at the head of it. As such, FOSL stock should head higher in a long-term window from here. Source: Shutterstock ### Capri (CPRI) Sales Exposure to China: 8% Near-term outlook: The near-term outlook for global luxury brand Capri (NYSE:CPRI) has been quite negative. But, that may be changing soon. To be sure, this company does have an 8% sales exposure to China, and its global suite of brands (Michael Kors, Versace and Jimmy Choo) have broad exposure to the global consumer markets. But, the biggest weight on this stock has been its balance sheet, which has been increasingly pressured by the threat of rising interest rates. With the global economy rapidly cooling, it is unlikely rates head higher any time soon. As such, this stock's biggest risk may be moving into the rear-view mirror, and CPRI stock could be due for a near-term bounce back. * 7 High-Risk Chinese ETFs to Avoid ... For Now Long-term outlook: At current levels, the long-term outlook for CPRI stock is favorable as healthy long-term fundamentals are set to converge on what is a hugely discounted valuation. CPRI stock currently trades at just over 7X forward earnings. That is dirt cheap. But, between Michael Kors, Versace, and Jimmy Choo, Capri has amassed a portfolio of luxury brands with enduring appeal. Thus, long-term, this company should be able to grow revenues, margins, and profits at a healthy rate. None of that is priced in at 7X forward earnings, meaning the stock has huge firepower in a long-term window. Source: Shutterstock ### Under Armour (UAA) Sales Exposure To China: 5% Near-term outlook: The near-term outlook for athletic apparel company Under Armour (NYSE:UAA) is favorable, despite its 5% sales exposure to China. The rationale for this favorable outlook is that all the bad news has already been priced into the stock. At one point in time in early December, this was a $25 stock. Just a month later, UAA stock has plunged more than 30% to $17. Now, the RSI hovers right around oversold territory, the valuation is as cheap as its been in several years, and sentiment is awful. In other words, this stock is due for a near-term bounce back. Long-term outlook: The long-term outlook isn't so great. At its core, Under Armour is an athletic apparel brand that failed to branch into the lifestyle market, and is instead doubling down on the performance market. This re-focus is the right move for stability and profitability. But, it also limits this company's potential upside in a long-term window. As such, this company appears to have runway to $1.15 in EPS within five years. A Nike-average 25 forward multiple on that implies a four-year forward price target of $28. That's good, but not great, upside in a four to five year window. As of this writing, Luke Lango was long AAPL, NKE, SKX, UAA and CPRI. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy for Winning the Online Battle * The 7 Best Stocks in the Entrepreneur Index * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 7 Retail Stocks With Worrisome Exposure to China appeared first on InvestorPlace.
- Motley Fool•12 days ago
Why Skechers Stock Dropped 15.2% in December
Skechers appeared to fall last month with the broader market and on China trade concerns. Here's what investors need to know.
- Motley Fool•14 days ago
3 Top China-Related Stocks to Watch in January
There are lots of ways to profit from China's growth.
- Market Realist•18 days ago
Deckers’ Recent Bottom-Line Performance Has Been Impressive
Why Deckers Outdoor Stock Soared 59.4% in 2018(Continued from Prior Part)Bottom-line performance In the last ten quarters, Deckers Outdoor (DECK) has beaten analysts’ bottom-line estimates nine times and missed them just once.
- Market Realist•18 days ago
How Deckers Outdoor’s Top Line Has Trended Recently
Why Deckers Outdoor Stock Soared 59.4% in 2018(Continued from Prior Part)Recent performance In the last ten quarters, Deckers Outdoor (DECK) has beaten analysts’ top-line estimates eight times and missed them twice.
Market Realist•19 days agoHow Deckers’ Forward PE Stacks Up with Peers
Forward PE multiples are one of the most important metrics used for investment decisions. As of December 31, Decker Outdoor (DECK) was trading at a 12-month forward PE ratio of 17.8x. In comparison, Foot Locker (FL), Nike (NKE), and Skechers (SKX) are trading at PEs of 10.9x, 25.4x, and 11.5x, respectively, as of December 31.
- Market Realist•19 days ago
Why Deckers Outdoor Stock Soared 59.4% in 2018
In 2018, Deckers Outdoor (DECK) stock soared 59.4% and last closed trading at $127.95. In the trailing five quarters, Deckers has beat both sales and adjusted EPS analysts’ estimates. The bottom-line performance was also supported by buybacks and reduced tax rates.
- InvestorPlace•21 days ago
Adidas Stock is a Sell Because The Iconic Brand Is Losing Steam
In the last three years, Adidas (OTCMKTS:ADDYY) has done that bit the best, as ADDYY stock has been the only one of its peers to outperform the market in that time. The athletic shoe and apparel space has four big publicly traded companies: Adidas, Nike (NYSE:NKE), Under Armour (NYSE:UAA), and Skechers (NYSE:SKX). In that three period — and despite secular tailwinds in athletic apparel adoption — shares of Skechers and Under Armour have fallen by 25% or more.
Market Realist•25 days agoNike’s Fiscal 2019 Second-Quarter Bottom Line Is Impressive
As we’ve mentioned, Nike’s (NKE) adjusted EPS rose 13% YoY (year-over-year) to $0.52 in the second quarter of fiscal 2019, beating analysts’ consensus estimate of $0.46. To compare, analysts expect Under Armour’s (UAA) adjusted EPS to be $0.04 in the fourth quarter of fiscal 2018, much better than the break-even earnings it reported in the fourth quarter of fiscal 2017. They expect Skechers’s (SKX) adjusted EPS to grow 9.5% YoY to $0.23. Nike’s higher revenue expanded its gross margin by 80 basis points to 43.8% in the second quarter. Nike expects its margins to improve in fiscal 2019, cushioned by Nike Direct and product innovations. In fiscal 2019, Nike now expects its gross margin to expand 70 basis points (versus its previous expectation of 50 basis points).
