We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SKX vs. DECK: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Shoes and Retail Apparel stocks have likely encountered both Skechers (SKX - Free Report) and Deckers (DECK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Skechers has a Zacks Rank of #1 (Strong Buy), while Deckers has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SKX likely has seen a stronger improvement to its earnings outlook than DECK has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SKX currently has a forward P/E ratio of 16.22, while DECK has a forward P/E of 16.58. We also note that SKX has a PEG ratio of 1.08. 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. DECK currently has a PEG ratio of 1.37.
Another notable valuation metric for SKX is its P/B ratio of 2.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DECK has a P/B of 4.19.
These metrics, and several others, help SKX earn a Value grade of B, while DECK has been given a Value grade of C.
SKX sticks out from DECK in both our Zacks Rank and Style Scores models, so value investors will likely feel that SKX is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SKX vs. DECK: Which Stock Should Value Investors Buy Now?
Investors with an interest in Shoes and Retail Apparel stocks have likely encountered both Skechers (SKX - Free Report) and Deckers (DECK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Skechers has a Zacks Rank of #1 (Strong Buy), while Deckers has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SKX likely has seen a stronger improvement to its earnings outlook than DECK has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SKX currently has a forward P/E ratio of 16.22, while DECK has a forward P/E of 16.58. We also note that SKX has a PEG ratio of 1.08. 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. DECK currently has a PEG ratio of 1.37.
Another notable valuation metric for SKX is its P/B ratio of 2.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DECK has a P/B of 4.19.
These metrics, and several others, help SKX earn a Value grade of B, while DECK has been given a Value grade of C.
SKX sticks out from DECK in both our Zacks Rank and Style Scores models, so value investors will likely feel that SKX is the better option right now.