Skechers USA (SKX) Is Today's Dead Cat Bounce Stock

Trade-Ideas LLC identified Skechers USA (SKX) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Skechers USA

(

SKX

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Skechers USA as such a stock due to the following factors:

  • SKX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $117.6 million.
  • SKX has traded 515,258 shares today.
  • SKX is up 3.1% today.
  • SKX was down 6.3% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SKX with the Ticky from Trade-Ideas. See the FREE profile for SKX NOW at Trade-Ideas

More details on SKX:

Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children, as well as performance footwear for men and women under the Skechers GO brand name worldwide. SKX has a PE ratio of 19. Currently there are 6 analysts that rate Skechers USA a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Skechers USA has been 4.4 million shares per day over the past 30 days. Skechers USA has a market cap of $3.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.07 and a short float of 9.3% with 1.67 days to cover. Shares are up 43.1% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Skechers USA as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 15.9%. Since the same quarter one year prior, revenues rose by 27.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SKX's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SKX has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 29.01% and other important driving factors, this stock has surged by 59.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SKX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SKECHERS U S A INC has improved earnings per share by 29.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SKECHERS U S A INC increased its bottom line by earning $0.91 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.55 versus $0.91).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 30.3% when compared to the same quarter one year prior, rising from $51.12 million to $66.60 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...