Skechers Stock Soared after Strong Fourth-Quarter Results



SKX stock rose after 4Q17 results

Skechers’s (SKX) solid fourth-quarter results drove SKX stock higher by 7.5% on February 9, 2018. The company is now at a YTD (year-to-date) profit of 5.7%.

Skechers’s financial results have been a key driving force for the stock. After its 3Q17 results, the stock soared a whopping 41%, marking its biggest one-day gain ever. The company closed 2017 with gains in excess of 50%. It was among the best-performing apparel stocks. In comparison, Nike (NKE) and Lululemon Athletica (LULU) each recorded about 20% gains, while Under Armour (UAA) plunged 50% during the year.

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Analysts’ actions after 4Q17 results

While none of the analysts covering Skechers changed their recommendations, many of them did raise their target prices. They include Cowen and Company (from $42 to $46), Wedbush (from $45 to $46), Citigroup (from $45 to $50), and Susquehanna (from $46 to $52).

Skechers now has an average price target of $48.22, which reflects an upside of 21%. The company is covered by 11 Wall Street analysts who have jointly rated the stock a 1.5 on a scale of 1 for “strong buy” to 5 for “sell.” All the analysts covering the company suggest a “buy.” There are no “sell” or “hold” ratings.

Skechers is currently the best-rated company among sportswear stocks. In comparison, Under Armour (UAA), Nike (NKE), Lululemon Athletica (LULU), and Columbia Sportswear (COLM) are rated 3.2, 2.4, 2.3, and 2.2, respectively.

ETF investors seeking to add exposure to SKX can consider the First Trust Consumer Discretionary AlphaDEX ETF (FXD), which invests 1.6% of its portfolio in the company.


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