not vested
Long-Term Value Stocks With Hulking Upside: Skechers USA Inc (SKX)
Key Metrics: 14-times forward earnings, 16.5% revenue growth last quarter
The Bull Thesis: Sticking in the athletic retail world, another misunderstood value stock with big upside potential is Skechers USA Inc (NYSE:SKX). Despite being in the same game as Nike (28-times forward earnings), Skechers trades at just 14-times forward earnings.
Why? Because Skechers is viewed by the market as less cool than Nike. And reasonably so. Nike is everyone’s favorite athletic apparel brand. Skechers? Only little kids and old people wear Skechers, right?
Wrong. Skechers is actually growing more quickly than Nike, and that has been the case for several years now. Most of this big growth is powered by international expansion, but the company’s domestic business is also showing healthy growth.
In other words, Skechers is no longer a brand just for little kids and old people. The company has re-invented itself, and the numbers show that this re-invention is working.
From this perspective, at 14-times forward earnings with 16.5% revenue growth last quarter, SKX stock is just too cheap to ignore at present levels.
Source: Investor Place