Skechers (SKX) ended the recent trading session at $57.01, demonstrating a -1.37% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.97%. On the other hand, the Dow registered a loss of 1.69%, and the technology-centric Nasdaq decreased by 2.7%.
Prior to today's trading, shares of the shoe company had lost 4.92% over the past month. This has lagged the Consumer Discretionary sector's loss of 3.6% and the S&P 500's loss of 2.79% in that time.
The upcoming earnings release of Skechers will be of great interest to investors. The company's earnings report is expected on April 24, 2025. In that report, analysts expect Skechers to post earnings of $1.18 per share. This would mark a year-over-year decline of 11.28%. Meanwhile, our latest consensus estimate is calling for revenue of $2.44 billion, up 8.15% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.46 per share and revenue of $9.74 billion. These totals would mark changes of +7.21% and +8.61%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Skechers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. Skechers is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Skechers is currently trading at a Forward P/E ratio of 12.95. Its industry sports an average Forward P/E of 11.61, so one might conclude that Skechers is trading at a premium comparatively.
Investors should also note that SKX has a PEG ratio of 0.91 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 0.92.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Skechers U.S.A., Inc. (SKX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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