|Bid||39.41 x 1200|
|Ask||39.42 x 900|
|Day's Range||39.32 - 40.10|
|52 Week Range||21.45 - 40.50|
|Beta (3Y Monthly)||1.35|
|PE Ratio (TTM)||19.13|
|Earnings Date||Oct 16, 2019 - Oct 21, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||42.80|
While few can fill Shaquille O’Neal’s size 22 shoes, Skechers is giving kids a chance to try through a new collaboration with the basketball legend. The Shaq by Skechers collection is the first-ever line of kids’ athletic footwear designed especially for the basketball court under the Skechers Kids brand.
Skechers' (SKX) focus on new line of products, cost-containment efforts, inventory management, and global distribution platform bode well.
Shares of athletic apparel brand Skechers (NYSE:SKX) popped in mid-July after the company reported record second-quarter results which came in well ahead of expectations. Management also delivered an above-consensus third quarter guide, and said all the right things on the conference call. SKX stock jumped 14% in response to a new 52-week high.That post-earnings rally is a continuation of what has been a much bigger and longer rally in Skechers stock throughout 2019. Year-to-date, SKX stock is now up more than 68%.I've been bullish on SKX stock the entire way up, pounding on the table over and over again that this is a really strong company with robust, long-term growth prospects and a persistently undervalued stock. But, on the heels of a 68%-plus year-to-date rally, my bullishness on SKX stock is waning some.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhy? Valuation. At $40, SKX stock is now fully valued considering its realistic long-term growth prospects, according to my numbers. The stock still has some momentum upside left over the next few months as it appears that third quarter back-to-school numbers will be good. But, with the valuation now maxed out, further upside in SKX stock from here seems limited. * 7 Defense Stocks to Buy to Fortify Your Portfolio As such, while I'm still a fan of the Skechers long-term story, I think the best of the 2019 rally in SKX stock has already played out. Skechers Is on FireSecond-quarter numbers affirmed that Skechers is on fire right now.The company reported 13.7% constant currency revenue growth in Q2 -- up from 5.2% in the previous quarter -- including a 25.2% gain in the international business, a 1.5% gain in domestic sales, and a 4.9% rise in comparable sales. Those are some of the best numbers this company has reported in recent memory.Further, things are only getting better. Management said on the conference call that growth trends within the second quarter improved each month, and have continued to tick up in July. That's why they are guiding for another of 10%-plus revenue growth next quarter.Under the hood, Skechers is leveraging product collaborations and a shift to direct-to-consumer sales to be both more interesting and relevant to consumers around the globe. These two initiatives are working. They are also far from over. Skechers plans to launch more collaborations over the next several months, while the company continues to add several new direct-to-consumer stores.As such, Skechers has a ton of momentum heading into the important back-to-school season. That should translate into strong sales for the brand, which means that third quarter numbers could look even better than second quarter numbers. With this big catalyst on the horizon, analysts will likely upgrade SKX stock, and investors will buy in.Thus, it does appear likely that SKX stock has at least some upside firepower left for the foreseeable future. Skechers Stock Reflects This Recent StrengthThe problem with SKX stock is that favorable back-to-school sales trends are already priced into the stock, and the underlying valuation here is starting to look maxed out.I've always seen Skechers as a solid footwear brand in the secular growth athletic apparel market. The secular appeal of Skechers is two-fold. First, the shoes are cheaper than Nike (NYSE:NKE) and Adidas (OTCMKT:ADDYY) shoes, yet are of similar quality and have similar styles. Second, Skechers shoes are all about comfort over style, whereas other brands can often get caught up in the style wars.This low price positioning and comfort-first approach means that Skechers will continue to attract the price-sensitive and comfort-oriented customers around the globe. Second-quarter numbers speak to the magnitude of this trend. As do the numbers over the past several years.From this perspective, I think Skechers should be able to grow revenues at a 6%-plus compounded annual growth rate into 2025, just slightly above the 4% projected growth rate for the global textile market. During that stretch, gross margins should expand gradually as consistent and strong demand allows for product price hikes. At the same time, the opex rate should fall with scale as Skechers pulls back on what was accelerated marketing spend over the past few years.Broadly, I think Skechers can do about $7 billion in sales by 2025 (versus $4.6 billion last year) on operating margins of 12.5% (versus 9.4% last year). That combination ultimately leads me to believe that Skechers will produce roughly $4 in EPS by fiscal 2025. Based on a market average of about 16-times forward multiple and a 10% discount rate, that yields a fundamentally supported 2019 price target for SKX stock of $40. Bottom Line on SKX StockThe reality is that Skechers is a great company, and SKX stock is up more than 68% year-to-date because the market is finally starting to appreciate this reality. But, the valuation is now starting to look maxed out, meaning that the best of the 2019 rally in SKX stock may have already come and gone.That's why I used this post-earnings rally as an opportunity to take profits off the table. I'm fairly certain that given the inherent volatility of SKX stock, I'll be able to buy back into this stock at lower prices in the not-too-distant future.As of this writing, Luke Lango was long NKE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Why Skechers Stock's Big Rally May Be on Its Last Legs appeared first on InvestorPlace.
When looking for new winning stocks, investors will often turn to the analysts. However, analysts often just maintain the same ratings so it’s hard to find fresh investing ideas. That’s why it’s a big deal if a company gets an upgrade from a trusted analyst, and when this happens investors should take notice. For example, HealthEquity, Inc. (HQY) share prices surged by 9% after Merrill Lynch analyst, Allen Lutz, upgraded the stock on July 19.Here are 10 stocks that got upgraded recently by the top Wall Street analysts. Stitch Fix, Inc. (SFIX)On July 21, five-star analyst, Scott Devitt, upgraded the online personal styling service from a Hold to a Buy and set a $35 price target. The Stifel Nicolaus analyst said, “Despite the slowdown in active client growth, we are confident in management’s ability to drive healthy ARPU growth in the intermediate term by continuing to improve keep rates through stronger personalization (Style Shuffle), high-quality client adds, and healthy retention.” He has a 71% success rate and on average gets a 23% return per rating. SFIX has a ‘Moderate Buy’ analyst consensus, with 4 Buy ratings vs 3 holds over the last three months. It has an average price target of $37, suggesting analysts believe share prices could jump by 38%. Applied Materials, Inc. (AMAT) AMAT got a vote of confidence yesterday from Goldman Sachs analyst, Toshiya Hari. Hari upgraded the semiconductor company to a Buy and raised the price target from $48 to $56. Its price target suggests upside potential of 17%. “We see AMAT benefiting from improved outlook due to leading WFE share position as well as favorable benefits from exposure to memory along with AMAT's increased willingness to deploy capital.” The stock boasts a ‘Strong Buy’ analyst consensus and $51 average price target, indicating 7% upside potential. Weight Watchers International, Inc. (WW)Top D.A. Davidson analyst, Linda Bolton Weiser, upgraded the weight loss program on July 19 to a Buy. She raised the price target from $25 to $32, suggesting 29% upside potential. “WW has already reported improved recruitment trends, chatter on app download data indicates stabilization of subscriber trends, and our proprietary analysis of Reddit comments indicates keto interest could be fading. Our data also show improved sentiment toward the meeting experience in 2Q19 vs. 1Q19. We believe 2019 earnings risk is low,” she said. However, the Street is cautious about WW. It has a ‘Hold’ analyst consensus and $26 average price target, suggesting 3% upside potential. Skechers USA, Inc. (SKX) On July 19, the shoemaker got an upgrade from Wedbush analyst, Christopher Svezia. He gave the stock a Buy rating and raised the price target from $31 to $46. He believes share prices could jump by as much as 18%. The analyst points to the company’s ability to manage expenses well in the past three quarters, and its focus on profitability as opposed to sales as the reason for the upgrade.SKX has a ‘Moderate Buy’ analyst consensus and a $43 average price target, suggesting 10% upside. PriceSmart, Inc. (PSMT)PriceSmart operates membership warehouse clubs in Central America and the Caribbean. Top Kansas City Capital analyst, Jonathan Braatz, upgraded PSMT to a Buy and set a $70 price target, demonstrating his belief that shares could rise by 13%. “The numbers have been getting stronger as the year has progressed. In June, PSMT reported that comparable-store sales rose 1.9% and, adjusted for currency, 4.7%. Still for the full year, we estimate this currency drag will be around $100 million,” he said. Braatz has an 83% success rate and a 17% average return per rating. The Street is cautiously optimistic on PSMT. It has a ‘Moderate Buy’ analyst consensus and $76 average price target, suggesting 23% upside. KBR, Inc. (KBR)The engineering company and former subsidiary of Haliburton was upgraded by Cowen & Co. analyst, Gautam Khanna, on July 19. The five-star analyst raised his price target from $23 to $31. Khanna has a 74% success rate and 14% average return per rating.KBR has a ‘Moderate Buy’ analyst consensus and $28 average price target, indicating 8% upside. American International Group, Inc. (AIG)On July 18, William Blair analyst, Adam Klauber, upgraded the insurance giant to a Buy as he believes it has long-term earning potential. “While it is still on the early side, we expect to see signs of a turnaround that should manifest over the next several years. The current management team appears to have laid the groundwork for a long-term rebound with significant mix repositioning, a shift in underwriting strategy, and de-risking of the investment portfolio,” he said. AIG boasts a ‘Strong Buy’ analyst consensus and $58 price target, suggesting 4% upside potential. Upwork Inc. (UPWK) Upwork is a global freelancing platform that facilitates collaboration between businesses and independent professionals. On June 26, Brent Thill of Jefferies upgraded his rating from a Hold to a Buy and set a $23 price target. “With the stock down 17% YTD and valuation at a 37% discount to peers, risk/reward has improved,” he said. The analyst has a 75% success rate and gets a 20% average return per rating," he said. UPWK has a ‘Moderate Buy’ analyst consensus and $22 average price target, suggesting 31% upside. Deckers Outdoor Corporation (DECK)DECK got a nod of approval from Merrill Lynch. Five-star analyst, Rafe Jadrosich, upgraded the footwear designer to a Buy and raised the price target from $150 to $180, suggesting 3% upside. “We like HOKA growth and buybacks which ought to generate a continuation in EPS upside,” Jadrosich said. The analyst boasts an impressive 83% success rate and a 32% average return per rating. The consensus among analysts is that DECK is a ‘Moderate Buy’. It has an average price target of $171. Analog Devices, Inc. (ADI)ADI is a semiconductor company specializing in data conversion, signal processing and power management technology. On June 10, Toshiya Hari also ugraded ADI from a Sell to a Buy and raised the price target from $101 to $114. “ADI, in our view, has exposure to multiple idiosyncratic revenue drivers. Specifically, we believe ADI's disproportionate exposure to the Comms Infrastructure end-market coupled with content gain opportunities in Automotive will drive growth that exceeds peers in the analog semiconductor space,” he said. ADI has a ‘Moderate Buy’ analyst consensus and $116 average price target.
Skechers Inc. shares rallied in the extended session Thursday after the shoe retailer reported second-quarter earnings that topped Wall Street views.
It was another mixed trading session, with U.S. stocks falling in the final hours of trading. How much will the Fed cut rates? What will so-and-so report on earnings? Investors have a lot of questions, but on the plus side, the markets are still holding up pretty well. Let's look at a few top stock trades going into next week. Top Stock Trades for Tomorrow 1: Boeing Click to EnlargeShares of Boeing (NYSE:BA) bounced more than 4% on Friday as the company announced a $4.9 billion charge related to the 737 MAX. With earnings next week, that announcement is somewhat surprising to me.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, the stock held and is bouncing off the key $360 to $362 area now. $380 has been a trouble spot for BA, but should it continue higher into earnings, the setup will get interesting. * 10 Tech Stocks That Are Still Worth Your Time (And Money) If the stock climbs to the $396 to $400 level ahead of earnings, investors may consider taking profits ahead of the report. A move over $400 puts the ~$413 gap on the table.On a pullback, see that $356 to $360 holds as support. Below puts $337 to $340 on the table. Top Stock Trades for Tomorrow 2: Chewy Click to EnlargeChewy (NYSE:CHWY) stock looked like it was going to rally on Friday morning. The company reported strong revenue growth, but couldn't hold onto its gains.With shares falling -- down over 4.5% on the day -- the stock lost its 8-day and 20-day moving averages. It briefly broke below its post-IPO lows, although $31 is buoying the name for now.On the upside, see if CHWY can breakout over downtrend resistance (blue line). On the downside, see if $30.78 to $31 holds as support. If it doesn't hold, Chewy is a no-touch for now. Top Stock Trades for Tomorrow 3: Skechers Click to EnlargeShares of Skechers (NASDAQ:SKX) are exploding higher on the day, jumping 12% on better-than-expected earnings.From here, I would love to see SKX hold above the $38 level. If it can, it puts the $41.50 to $42 level on the table, an area that stymied SKX's run for months in early 2018.If $38 gives way, we'll need to see if $35 holds as support. Top Stock Trades for Tomorrow 4: AMC Click to EnlargeShares of AMC Entertainment (NYSE:AMC) are jumping more than 8% on better-than-expected earnings. While the gains are nice, the stock was swiftly knocked lower after testing $11. This coincides with a test of the 50-day moving average and 10-week moving average.It would be disappointing to see AMC give up all of its post-earnings gains, but it will still look okay if it holds above $10. Over $11 and it could regain some upside momentum. If it can, keep in mind the 200-day is up at $13.86, while the 61.8% retracement is at $13.59. Top Stock Trades for Tomorrow 5: Crowdstrike Click to EnlargeWhat a beauty of chart Crowdstrike (NASDAQ:CRWD) has. Shares are up 13% on the day after strong earnings results, and the stock is ripping to new highs as a result. * 10 Tech Stocks That Are Still Worth Your Time (And Money) The stock was forming a tightening wedge and is now breaking out higher. Look to see that CRWD holds up over $80. If it does, investors can stay long. Below and it will need to be re-evaluated.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post 5 Top Stock Trades for Monday: BA, CHWY, SKX appeared first on InvestorPlace.
Skechers USA Inc (NYSE: SKX ) shares were trading sharply higher Friday, one day after posting a big second-quarter earnings beat and record quarterly net sales. Here's what two analysts had to say after ...
The Dow Jones showed a modest gain Friday as Boeing stock and Microsoft stock outperformed. CrowdStrike and Skechers soared on earnings.
Skechers USA Inc. stock soared 14% in Friday trading after blowout earnings were followed by a stock upgrade at Wedbush to outperform from neutral. Wedbush raised its price target to $46 from $31. "In our view, international wholesale and global direct-to-consumer can continue to outperform into the second half of 2019, driving improved leverage and earnings per share upside," wrote Wedbush analysts led by Christopher Svezia. Analysts are also encouraged by the U.S. business based on off-price comparisons, growth in the wholesale Amazon.com Inc. account, and the product pipeline. Skechers also saw its price target raised at at least three research groups: Susquehanna Financial Group (up to $42 from $37), Cowen (up to $40 from $32) and Stifel (up to $44 from $35). "We are highly encouraged by the combination of strong end-market demand and SG&A [sales, general and administrative expenses] efficiency," Stifel wrote. "While still mindful of necessary systems investments and process improvements to support the current scale of the business, we see double-digit growth and leverage capacity as deserving of a higher multiple." Stifel rates Skechers stock buy. Skechers shares have soared 73.5% in 2019 so far while the S&P 500 index is up 19.8% for the period.
Dow Jones stocks Microsoft and Boeing boosted early trade Friday, as CrowdSrike and Skechers scored opening bell breakouts.
Futures signaled more stock market rally gains. Boeing sees an end to 737 Max woes, Microsoft rallied on earnings. CrowdStrike, Skechers surged past buy points.
Shares of shoe maker Skechers gained nearly 12% Friday after the company reported second-quarter earnings and revenue Thursday evening that topped Wall Street expectations. SKX added $4.17 to close at $39.01 after the Manhattan Beach, Calif.-based company reported net income of $75 million, or 49 cents per share. Revenue also rose 11% to $1.26 billion, while Skechers reported a nearly 20% increase in international sales.