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Skechers USA, Inc. (NYSE:SKX) isn’t the biggest company, but it has led the NYSE gainers with relatively large price increases over the past few weeks. The company is inching closer to its year-to-date high due to recent stock price gains. With many analysts covering the mid-cap stock, one might expect price-sensitive announcements to be already factored into the stock price. But what if you still have the opportunity to buy? Today we’ll analyze the latest data on Skechers USA’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Skechers USA.
What is Skechers USA worth?
According to our valuation model, Skechers USA appears to be fairly priced at approximately 8.71% above our intrinsic value. So if you buy Skechers USA now, you’ll be paying a relatively fair price. And if he believes the stock is actually worth $54.88, there is only a small downside when the price falls to its actual value. Will there be any chance to buy cheaply in the future? Skechers USA’s stock price is very volatile, so it could drop (or rise) in the future, giving us another chance to buy. This is based on its high beta value, which is a good indicator of how volatile a stock is compared to the rest of the market.
What does the future hold for Skechers USA?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a solid outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. The future looks bright for Skechers USA, as profits in the next few years are expected to increase he 76%. It appears that the stock is expected to have higher cash flow, which should lead to a higher stock valuation.
what this means to you
Are you a shareholder? The market appears to have already priced in SKX’s positive outlook, with the stock trading around its fair value. However, there are other important factors that we haven’t considered today, such as the company’s financial strength. Have these factors changed since you last looked at the stock price? Do you have enough confidence to invest in the company if the price falls below fair value?
Are you a potential investor? If you’ve been keeping an eye on SKX’s movements, now may not be the best time to buy, given that SKX is trading near its fair value. However, the optimistic outlook is encouraging for the company and means it’s worth further considering other factors, such as the strength of its balance sheet, in order to take advantage of the next share price decline.
So while the quality of earnings is important, it’s equally important to consider the risks facing Skechers USA at the moment. What we found on Simply Wall Street: 1 warning sign for Skechers USA And I think they’re worth paying attention to.
If you are no longer interested in Skechers USA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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