This featured stock has finally hit its stride, with a strong global distribution model and expanded company ownership of retail stores, propelling the company forward as the fastest growing footwear company in the world, observes Mike Cintolo, editor of Cabot Top Ten Trader.
Skechers (SKX) has quickly become one of the “it” stocks on Wall Street. After posting consecutive quarters with double-digit revenue growth and triple-digit earnings growth, Skechers thrilled investors when it crushed first-quarter earnings and revenue estimates by 80% and 9%, respectively.
In fact, according to Zacks earnings data, Skechers has beaten Wall Street's estimates by an average of 125% during the past four quarters.
It seems analysts are beginning to look past the company's prior missteps, with current year earnings estimates now forecasting growth of more than 80%.
Skechers has also stepped up its game in terms of endorsement deals. The company grabbed major headlines after Meb Keflezighi won the Boston Marathon wearing a pair of Skechers.
The company then went on to land endorsement deals with legendary NFL quarterbacks Joe Montana and Joe Namath and MLB's Pete Rose.
After spending the first quarter of 2013 basing in the $20 region, SKX shares broke out on strong volume in late July. Bolstered by its 10- and 25-week moving averages, the stock would eventually meet with resistance in the $35 region in January.
A rejection there forced SKX to test support at $25 during the next several weeks, before a strong year-end earnings report sent the stock surging back toward the $35 region.
SKX spent the next several weeks digesting these gains until another impressive earnings report sent the stock soaring toward multi-year highs north of 40 in late April.
Volume has remained strong for SKX in the ensuing weeks, with shares showing signs of resuming their uptrend. We believe SKX is buyable on dips.
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