In the latest market close, Skechers (SKX) reached $49.47, with a +0.24% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.81%. Meanwhile, the Dow gained 1.56%, and the Nasdaq, a tech-heavy index, added 2.06%.
Coming into today, shares of the shoe company had lost 11.83% in the past month. In that same time, the Consumer Discretionary sector lost 7.73%, while the S&P 500 lost 6.14%.
Investors will be eagerly watching for the performance of Skechers in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 24, 2025. The company is forecasted to report an EPS of $1.18, showcasing a 11.28% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.44 billion, showing an 8.15% escalation compared to the year-ago 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.
Any recent changes to analyst estimates for Skechers should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% downward. Skechers is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Skechers is currently exchanging hands at a Forward P/E ratio of 11.06. This signifies a premium in comparison to the average Forward P/E of 9.93 for its industry.
We can additionally observe that SKX currently boasts a PEG ratio of 0.78. 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 industry had an average PEG ratio of 0.85 as trading concluded yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 13% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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