Skechers USA, Inc. (NYSE:SKX) is a shoe manufacturer that has existed since 1992. Skechers designs and markets contemporary footwear for men, women, and children. To read a full description of Skechers from reuters, click here. Skechers is currently undervalued. As of Friday's closing bell, Skechers is priced at $22.03. With an EPS of 3.29, its P/E is just 6.69, the lowest of all the contending footwear manufacturers. The next lowest P/E is 12.08 from Rocky Brands, Inc.
Skechers stock soared during this past summer as it had good sales of its new "shape-ups." However, the stock plummeted after revealing a $300M inventory. Don't let this number scare you away - as the holiday season arrives it is sure to drop, especially with Skechers' praised marketing. Since June '10, Skechers' has had a 7% increase in operating profit and an astonishing 34% increase since last December. Additionally, Skechers has a good balance sheet with only $15M of long term debt as opposed to $1.23B of assets.
SmarTrend states that Skechers has the highest Forward Earnings Yield in the entire footwear industry - 13.5%.
I say BUY BUY BUY. I will place an order at 21.50/share. At that price, the stock is a bargain. Hit that Bull's Eye!
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