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Here's Why Skechers (SKX) Fell More Than Broader Market

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In the latest trading session, Skechers (SKX - Free Report) closed at $65.13, marking a -1.79% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.04%.

The shoe company's shares have seen a decrease of 1.59% over the last month, not keeping up with the Consumer Discretionary sector's gain of 3.63% and the S&P 500's gain of 1.25%.

The investment community will be closely monitoring the performance of Skechers in its forthcoming earnings report. The company is scheduled to release its earnings on October 24, 2024. In that report, analysts expect Skechers to post earnings of $1.15 per share. This would mark year-over-year growth of 23.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.32 billion, up 14.73% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $8.94 billion, which would represent changes of +18.91% and +11.79%, respectively, from the prior year.

Investors should also note any recent changes 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% decrease. Skechers is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Skechers is holding a Forward P/E ratio of 15.99. Its industry sports an average Forward P/E of 15.99, so one might conclude that Skechers is trading at no noticeable deviation comparatively.

We can additionally observe that SKX currently boasts a PEG ratio of 0.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SKX's industry had an average PEG ratio of 1.62 as of yesterday's close.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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