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Are Investors Undervaluing Skechers (SKX) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Skechers (SKX - Free Report) . SKX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14.31 right now. For comparison, its industry sports an average P/E of 20.89. Over the last 12 months, SKX's Forward P/E has been as high as 18.15 and as low as 11.91, with a median of 15.17.
SKX is also sporting a PEG ratio of 0.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SKX's industry currently sports an average PEG of 1.51. Over the past 52 weeks, SKX's PEG has been as high as 1.23 and as low as 0.43, with a median of 0.58.
Finally, investors should note that SKX has a P/CF ratio of 13.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.77. Over the past year, SKX's P/CF has been as high as 14.79 and as low as 10.16, with a median of 12.98.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Skechers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKX feels like a great value stock at the moment.
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Are Investors Undervaluing Skechers (SKX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Skechers (SKX - Free Report) . SKX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14.31 right now. For comparison, its industry sports an average P/E of 20.89. Over the last 12 months, SKX's Forward P/E has been as high as 18.15 and as low as 11.91, with a median of 15.17.
SKX is also sporting a PEG ratio of 0.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SKX's industry currently sports an average PEG of 1.51. Over the past 52 weeks, SKX's PEG has been as high as 1.23 and as low as 0.43, with a median of 0.58.
Finally, investors should note that SKX has a P/CF ratio of 13.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.77. Over the past year, SKX's P/CF has been as high as 14.79 and as low as 10.16, with a median of 12.98.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Skechers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKX feels like a great value stock at the moment.