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Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
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S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Free Stock Analysis Report: Get Buy, Sell, or Hold Recommendation (Ad)
Applied Materials stock is Ray Dalio's favorite in this new cycle
Palo Alto Networks aims at cyber security leadership
Critical asset just had biggest fall on record (Ad)
Spotify sounding better to analysts as company tunes into profits
3 Reasons the Capital One-Discover merger is a big deal
Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Bears covered shorts on this ETF, 3 stocks to pop on the shift
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Free Stock Analysis Report: Get Buy, Sell, or Hold Recommendation (Ad)
Applied Materials stock is Ray Dalio's favorite in this new cycle
Palo Alto Networks aims at cyber security leadership
Critical asset just had biggest fall on record (Ad)
Spotify sounding better to analysts as company tunes into profits
3 Reasons the Capital One-Discover merger is a big deal
Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Bears covered shorts on this ETF, 3 stocks to pop on the shift
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Free Stock Analysis Report: Get Buy, Sell, or Hold Recommendation (Ad)
Applied Materials stock is Ray Dalio's favorite in this new cycle
Palo Alto Networks aims at cyber security leadership
Critical asset just had biggest fall on record (Ad)
Spotify sounding better to analysts as company tunes into profits
3 Reasons the Capital One-Discover merger is a big deal
Critical asset just had biggest fall on record (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Bears covered shorts on this ETF, 3 stocks to pop on the shift

These 4 Shoemakers Have More Kick Than Allbirds

Key Points

  • Investors may be intrigued by Allbirds' low price, but this may be a case of getting what you pay for, as the company is showing no signs of profitability.
  • Meanwhile, Wall Street is eyeing strong earnings growth for Decker Outdoor.
  • Crocs is finding support near its 50-day average, a sign that institutional investors are just taking a breather. 
  • Analysts see a potential upside of 21.68% for Skechers.
  • Nike has been trending higher since October, and analysts believe there's more upside to come. 
  • 5 stocks we like better than Allbirds

In the stock market, it’s not unusual to see one-time high-fliers tread the earth just like everyone else, and that’s exactly what’s happened with shoemaker Allbirds Inc. NASDAQ: BIRD.

While Allbirds has some problems inherent with its business, shoe companies as a group have outperformed the broader market. Does that mean there are better investment opportunities for shoe aficionados? 

Before kicking that question around, let’s untie what’s happening at Allbirds.

Allbirds has yet to notch a profit, although earnings have been growing at double-digit rates. But the stock is down an almost incredible 91% from its November 2021 high. Investors are frequently drawn by the lure of low-priced stocks, but is this a case of “you get what you pay for?” 

Allbirds, which makes leisure shoes and other clothing using environmentally sustainable materials, went public on November 3 2021 at $15. The stock immediately took flight and rallied to a high of $32.44.

That’s as good as things ever got. 

A look at its chart shows an unrelenting downtrend, albeit with a glimmer of hope in recent weeks. 

The stock’s returns across rolling time frames are: 

  • 1 Month: +9.60%
  • 3 Months: +1.11%
  • YTD: +13.22%
  • 1-Year: -68.03%

Does this recent rally indicate there’s hope for the battered stock?

The company is slated to report fourth-quarter results on March 9, with Wall Street eyeing a loss of  $0.12 per share on revenue of $96.92 million. That would be a wider loss than a year ago, and a small decrease on the revenue side. 

The company may surprise to the upside, but those forecasts don’t suggest a stock that’s about to run its fastest race ever.

While the shoe industry may not be one that investors specifically target, there are plenty of opportunities there among some familiar names. 

Crocs

Revenue growth for Crocs Inc. NASDAQ: CROX accelerated in the past three quarters. Earnings are up at double-digit rates, although they’ve slowed from triple-digit increases in 2021. The stock has been trending higher since July, and is currently finding support at its 50-day moving average, a sign that investors are supporting the share price at that level. Those are bullish technical indicators that could signal more strength ahead. 


MarketBeat analyst data show a “moderate buy” rating on Crocs, with a price target of $138.29, an upside of 11.25%.

Deckers

Known for its comfortable (although some say ugly) Ugg boots, Deckers Outdoor Corp. NYSE: DECK is up 8.78% in the past three months. It’s in the process of forming a new base with a shallow correction. That pullback is normal, following a one-year rally of 40.95%, as investors take some profits.

In addition to Uggs, the company’s brands include Teva and Hoka. 

Revenue has been slowing in the past three quarters but has reached a healthy 13% growth rate most recently. Wall Street expects 14% earnings growth this year, to $18.54 per share, and another 18% next year, to $21.85. 

Skechers

Shares of Skechers U.S.A. Inc. NYSE: SKX gapped down on February 3 following its most recent quarterly report. The company issued full-year guidance that disappointed Wall Street, but as the news settled in, investors are supporting the stock near its 50-day moving average, a sign that the negative sentiment has abated for the moment.

Wall Street sees 20% earnings growth this year and 25% next year. That will mark a return to earnings growth after three-quarters of declining profitability. 

Analysts have a “moderate buy” rating on Skechers, with a price target of $53.83, an upside of 21.68%. 

Nike

Dow component Nike Inc. NYSE: NKE is by far the largest company in the shoe industry, with a market cap of $186 billion. The stock has been in rally mode since October, with a 46% return since its September 30 low.

As you might expect of such a large, mature company, Nike is a dividend payer. Its current yield is 1.13%, and it boasts a track record of increasing dividends for the past 21 years, nabbing it a spot on MarketBeat’s dividend achievers list

Analysts have a “moderate buy” rating on Nike, and expect the price to rise more than 8% in the coming months, which is not a bad estimate for a company of this size. 

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Should you invest $1,000 in Allbirds right now?

Before you consider Allbirds, 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 Allbirds wasn't on the list.

While Allbirds currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

10 "Recession Proof" Stocks That Will Thrive in Any Market Cover

Which stocks are likely to thrive in today's challenging market? Click the link below and we'll send you MarketBeat's list of ten stocks that will drive in any economic environment.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Allbirds (BIRD)
2.4065 of 5 stars
$0.93+1.1%N/A-1.16Hold$1.35
Crocs (CROX)
3.9653 of 5 stars
$115.72+0.1%N/A9.03Buy$139.78
Skechers U.S.A. (SKX)
4.8965 of 5 stars
$58.77+1.1%N/A16.84Moderate Buy$65.40
NIKE (NKE)
4.7733 of 5 stars
$105.30+1.9%1.41%30.79Moderate Buy$122.24
Deckers Outdoor (DECK)
4.3419 of 5 stars
$861.09+0.0%N/A30.97Moderate Buy$854.86
Compare These Stocks  Add These Stocks to My Watchlist 

Kate Stalter

About Kate Stalter

  • stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

Areas of Expertise

Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine


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