SKECHERS USA, Inc. (SKX) estimates continue to climb, leaving investors with an enticing 12.5 earnings multiple.
Company Description
SKECHERS makes and sells footwear through is own stores, in addition to department stores and its website.
Estimates Shaping-Up
By now you have probably seen ads, featuring the like of Joe Montana, for the Shape-Ups. SKECHERS says the shoe will tone your legs just by wearing them.
Given the bullish outlook on sales, analysts just can’t seem to raise estimates high enough. Since Tracey Ryniec featured SKECHERS in April the full-year Zacks Consensus Estimates have continues to rise.
The average projection for 2010 is calling for earnings of $3.18 per share, up from $2.87. Next year’s forecasts are calling for $3.51, up from $2.98.
If the company hits these targets annual growth rates will be 174% and 10%, respectively.
Great Valuations
Despite the strong growth, shares are trading at just 12.5 times forward estimates. Factor in the growth and you get a PEG ratio of just 0.7.
The Chart
Shares of SKX are pressuring the 52-week high and, given the current momentum, have a good chance to top that high water mark.
Read the April 30th Feature Here
DOW) has come out of the worst of the recession with a string of 5 straight big earnings surprises and a strategy to grow revenue by 10% a year. Read the full article.
Asbury Automotive Group, Inc. (ABG) is seeing earnings growth again as the American consumer re-emerges to buy cars and other big ticket items. Asbury has surprised on estimates 3 out of the last 4 quarters. Read the full article.
Consolidated Graphics, Inc. (CGX) recently said it saw some improving economic conditions heading into the second quarter even as sales declined in the first quarter. CGX has a solid 5-year return on equity of 14%. Read the full article.
Looking for a mining company that isn’t just producing gold and silver? Stillwater Mining Company (SWC) could be your bet. Earnings are expected to jump 2525% in 2010. Read the full article.
