Forecasting The Future: 7 Analyst Projections For Skechers USA

In the last three months, 7 analysts have published ratings on Skechers USA SKX, offering a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $80.71, a high estimate of $93.00, and a low estimate of $65.00. This current average has decreased by 2.17% from the previous average price target of $82.50.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive Skechers USA is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Skechers USA. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Skechers USA compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Skechers USA's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Skechers USA's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Skechers USA analyst ratings.

Delving into Skechers USA's Background

Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.

Financial Insights: Skechers USA

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Skechers USA's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 15.94%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Skechers USA's net margin excels beyond industry benchmarks, reaching 8.23%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Skechers USA's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.5%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Skechers USA's ROA excels beyond industry benchmarks, reaching 2.33%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.48, Skechers USA adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.