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S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Why Lucid Spiked Nearly 100% In One Day
Is This The End of Capitalism? (Ad)
Is Buying an Aged Corporation a Good Idea?
MarketBeat Week in Review – 1/23- 1/27
The Next Big Crisis Is Here (Ad)
Visa, L3Harris rise; Intel, Eastman Chemical fall
How major US stock indexes fared Friday 1/27/2023
The Next Big Crisis Is Here (Ad)
Closing prices for crude oil, gold and other commodities
Stocks drift as strong week for Wall Street heads for close
S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Why Lucid Spiked Nearly 100% In One Day
Is This The End of Capitalism? (Ad)
Is Buying an Aged Corporation a Good Idea?
MarketBeat Week in Review – 1/23- 1/27
The Next Big Crisis Is Here (Ad)
Visa, L3Harris rise; Intel, Eastman Chemical fall
How major US stock indexes fared Friday 1/27/2023
The Next Big Crisis Is Here (Ad)
Closing prices for crude oil, gold and other commodities
Stocks drift as strong week for Wall Street heads for close
S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Why Lucid Spiked Nearly 100% In One Day
Is This The End of Capitalism? (Ad)
Is Buying an Aged Corporation a Good Idea?
MarketBeat Week in Review – 1/23- 1/27
The Next Big Crisis Is Here (Ad)
Visa, L3Harris rise; Intel, Eastman Chemical fall
How major US stock indexes fared Friday 1/27/2023
The Next Big Crisis Is Here (Ad)
Closing prices for crude oil, gold and other commodities
Stocks drift as strong week for Wall Street heads for close

Analysts Like The Fit Of Skechers USA

Key Points

  • Skechers is moving up on a wave of analyst sentiment. 
  • The analyst's consensus price target is firming and may help lead the entire market higher. 
  • Inventory is one concern that may be cleared up in the next earnings report. 
  • 5 stocks we like better than Skechers U.S.A.

Analysts Like The Fit Of Skechers USA

The 2023 analyst activity in Skechers USA (NYSE: SKX) is a little mixed but investors should be cheered. The single downgrade is to Equal Weight from Overweight with a price target that is in line with the Marketbeat.com consensus estimate and the remainder of the 5 (that Marketbeat.com tools have tracked) include 2 upgrades and 3 price target increases. These have both the sentiment and the average target firming. With earnings just around the corner, this could signal that the rally will continue

For now, the Marketbeat.com consensus rating is a Moderate Buy with sentiment firming. The latest upgrade comes from Cowen, whose analyst said “Skechers' value proposition continues to resonate based on our checks and is gaining preference in our survey for casual/lifestyle footwear from Nike (NYSE: NKE) and Addidas (FR: ADS),” in the note that came with the upgrade to Outperform. Their target is $65 compared to the $51.58 consensus target, and both imply an upside for the stock from the $49 level. 

Skechers Has An Easy Bar To Hurdle 

Skechers analysts have the bar for fiscal Q4 revenue set so low it’s almost impossible for the company to miss. The consensus expects a YOY increase but a sequential decline that is not in line with 2022 trends. The company may experience a pullback in revenue, but 600 basis points is a little much, given the strength shown in past results.


The real question is how the margins have been impacted and if the company can outperform on the bottom line. The big bottom line miss posted in the previous quarter has the consensus down to only $0.36 adjusted, which is down YOY and sequentially and in line with the company’s guidance. 

One area of concern is inventory. Inventory levels are rising across the retail universe, and Skechers is not immune. The difference is that Skechers inventory was up only 21% YOY in the last report compared to much higher numbers from its primary competitors like Nike.

Nike reported a sequential decline in inventory in its December 2022 release but up more than 40% YOY, leading to aggressive clearance actions. In this light, Skechers may not have had to use clearance actions to the same extent as Nike, so the margin may not contract as much as feared.

Skechers also has a significantly lower exposure to apparel, where many Nike inventory dollars are parked. Skechers is slated to report on February 2nd. 

The Institutions Slip Into A Pair Of Skechers

The institutional activity in Skechers is telling. The takeaway is that institutions are buying this stock and have increased their holdings by roughly $450 million over the last year, which is worth about 6% of today’s market. That activity has total ownership up to nearly 94% and is growing, which makes this a tightly held name and one that could pop, given an increase in volume. Assuming this trend continues, shares of the stock could easily continue moving higher. 

Turning to the chart, this stock appears to be reversible. The stock launched up from its bottom in late 2022 and has since broken above the 150-day moving average and several key resistance points to trade at a 1-year high.

This high may be broken after the next earnings report, but there is a risk the strength is already being priced into the market. If shares of SKX can not get above $50 the market may top out. Worse, if the market reverses course after the current candle, it will form a bearish signal. 

Analysts Like The Fit Of Skechers USA

Should you invest $1,000 in Skechers U.S.A. right now?

Before you consider Skechers U.S.A., you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Skechers U.S.A. wasn't on the list.

While Skechers U.S.A. currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
adidas (ADS)
0 of 5 stars
€148.30+2.1%2.23%23.10N/AN/A
NIKE (NKE)
2.4872 of 5 stars
$127.53flat1.07%35.92Moderate Buy$127.79
Skechers U.S.A. (SKX)
2.9118 of 5 stars
$47.48-0.9%N/A10.65Moderate Buy$53.00
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

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