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Skechers - AI Stock Analysis
Analysis generated July 11, 2024
Skechers USA, Inc. (SKE) is a prominent global footwear company that designs, develops, and markets a diverse range of footwear for men, women, and children. With its groundbreaking and stylish products, Skechers has established itself as a footwear leader worldwide, boasting a strong operational and financial base. Founded in 1992, the company has grown exponentially, capturing significant market share and achieving robust financial performance.
Fundamental Analysis
For the last quarter, Skechers reported a revenue of $2.24 billion. This marks a remarkable increase of 14.20% compared to the previous quarter and an increase of 11.74% year-over-year (YoY). Such robust growth underscores the company's ability to drive sales and sustain revenue streams effectively.
Net income for the last quarter stood at $207 million, reflecting a significant rise of 137.00% from the prior quarter and an increase of 28.78% YoY. This substantial improvement indicates enhanced operational efficiency and profitability, a positive indicator for investors.
Additionally, Skechers' EBITDA for the last quarter was $317 million. This demonstrated an increase of 84.57% compared to the previous quarter and a rise of 26.71% YoY. Increased EBITDA signifies improved earnings generation and financial health.
The current P/E ratio of Skechers is 17.72. This valuation metric suggests that the stock is neither overvalued nor undervalued, generally aligning with industry norms.
However, it is worth noting that there have been a few instances of insider selling in recent months. This may be considered a bearish signal, as insider selling often reflects insiders' belief that the stock price may not appreciate significantly in the near term.
Technical Analysis
The current stock price of Skechers is $67.53. It is worth mentioning that this represents a decrease of 8.56% over the past month, a potential red flag for short-term investors. However, on an annual basis, the stock price has increased by 29.32%, signifying a positive long-term trend.
The Simple Moving Average (SMA10) is 66.98, which is equal to the previous SMA10. This indicates that there has been no significant change in the stock's short-term trend, maintaining a neutral outlook.
The Relative Strength Index (RSI) is 53.6, denoting a neutral condition. This suggests neither an overbought nor oversold situation, indicating a balanced demand-supply dynamic in the market.
Alternative Data Analysis
In terms of job postings, Skechers currently has 1,550 open positions, a growth of 29% in the last couple of months. This indicates the company's strategy to expand and grow, reflecting a positive business outlook.
However, while employee sentiment towards the company remains neutral, it has not shown significant enthusiasm, which could impact overall operational morale and efficiency.
Skechers' website has approximately 17 million visitors, suggesting steady customer acquisition. However, the number of daily mobile app downloads has decreased by 32% in recent months, an alarming trend that could point to a potential loss of customers for mobile-based transactions.
On social media, Skechers enjoys 1.6 million followers on Instagram, showing a 5% increase in the last couple of months. This may indicate rising brand interest and engagement. Conversely, the number of Twitter followers has remained static at 49,000 over the same period.
The AltIndex AI score, which predicts stock price movements based on a blend of fundamental, technical, and alternative data, stands at 57. This score implies a "hold" signal, advising investors to maintain their current positions for now.
Conclusion and Recommendation
Skechers presents a compelling case with its robust financial metrics, showing strong revenue, net income, and EBITDA growth both sequentially and year-over-year. The company's P/E ratio suggests it is reasonably valued. However, insider selling and a recent dip in the stock price might raise some concerns.
Technically, the stock appears to be in a neutral phase, with no clear short-term trend but maintaining a positive long-term perspective. The neutral RSI further supports this balanced view. While alternative data shows positive markers in job postings and social media engagement, the decline in mobile app downloads is worrisome.
Overall, based on the blend of fundamental, technical, and alternative data, Skechers seems to be a moderately safe investment. The "hold" signal from the AltIndex AI score aligns well with this analysis. Therefore, it is recommended to hold onto Skechers stock for the time being, monitoring closely for any significant changes in key metrics and market conditions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
