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Skechers (SKX) and Amazon (AMZN) are Aggressive Growth Stocks
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Brian Bolan is the Aggressive Growth Stock Strategist here at Zacks Investment Research and he has two more stocks for your aggressive growth radar screen. Today we have two stocks in the retail space following the new retails sales data that came in better than expectations.
Brian first looks at Skechers (SKX - Free Report) which is a Zacks Rank #1 (Strong Buy). This stock has a Zacks Style Score of B for Value and A for Growth and Brian reviews why he likes to see a divergence in the style scores.
Skechers make and distributes footwear not just shoes as Brian points out. He reviews the recent earnings history and then discusses the fact that quarterly estimates have fallen while annual estimates have risen.
A review of the valuation shows that SKX trades at 16x with solid growth this year and next…but Brian keys in on the operation margin line. The 110 basis point expansion in margin coupled with revenue growth will lead to higher earnings. Higher earnings generally allows for a higher stock price.
Next up is Amazon (AMZN - Free Report) which is also a Zacks Rank #1 (Strong Buy). Amazon has an A for its Growth Style Score and a D for the Value score and Brian automatically likes to see that.
Amazon (AMZN - Free Report) recently beat earnings and Brian highlights the fact that management has stated that margins are going to be moving higher.
In highlighting the sales estimates for AMZN in 2023 and 2024, Brian flags the idea that there is more than half of a trillion dollars this year and more than 600 billion dollars next year. Even a small move higher in margins would lead to a significant increase in earnings.
When looking at the chart, Brian flags the idea of the space between the annual estimates and notes that we could see the stock at $180 or more if margins move higher again next quarter.
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Skechers (SKX) and Amazon (AMZN) are Aggressive Growth Stocks
Brian Bolan is the Aggressive Growth Stock Strategist here at Zacks Investment Research and he has two more stocks for your aggressive growth radar screen. Today we have two stocks in the retail space following the new retails sales data that came in better than expectations.
Brian first looks at Skechers (SKX - Free Report) which is a Zacks Rank #1 (Strong Buy). This stock has a Zacks Style Score of B for Value and A for Growth and Brian reviews why he likes to see a divergence in the style scores.
Skechers make and distributes footwear not just shoes as Brian points out. He reviews the recent earnings history and then discusses the fact that quarterly estimates have fallen while annual estimates have risen.
A review of the valuation shows that SKX trades at 16x with solid growth this year and next…but Brian keys in on the operation margin line. The 110 basis point expansion in margin coupled with revenue growth will lead to higher earnings. Higher earnings generally allows for a higher stock price.
Next up is Amazon (AMZN - Free Report) which is also a Zacks Rank #1 (Strong Buy). Amazon has an A for its Growth Style Score and a D for the Value score and Brian automatically likes to see that.
Amazon (AMZN - Free Report) recently beat earnings and Brian highlights the fact that management has stated that margins are going to be moving higher.
In highlighting the sales estimates for AMZN in 2023 and 2024, Brian flags the idea that there is more than half of a trillion dollars this year and more than 600 billion dollars next year. Even a small move higher in margins would lead to a significant increase in earnings.
When looking at the chart, Brian flags the idea of the space between the annual estimates and notes that we could see the stock at $180 or more if margins move higher again next quarter.