By Timothy Lutts, Chief Analyst, Cabot Stock of the Month
From Cabot Wealth Advisory 8/11/14 Sign up for Cabot Wealth Advisory—it’s free!
Skechers (SKX) burst on the scene in the early 1990s as a manufacturer of athletic shoes (sneakers) geared to skateboarders, but it’s diversified widely over the years.
Today the company sells over $2.1 billion of footwear in 100 countries.
Back in April as I was watching the Boston Marathon, I was surprised to see that the winner, Meb Keflezighi of California, was wearing Skechers! That certainly gave a boost to the stock—which you can see on the chart.
And it’s done well since.
Here’s what Mike Cintolo, chief analyst of Cabot Top Ten Trader wrote about the company in a recent issue.
“Trendy footwear manufacturer Skechers USA continues to dress for success. Skechers has now logged four consecutive quarters where earnings growth has exceeded 100%, year-over year. In fact, in the most recent quarter, Skechers saw earnings soar 386% as the company’s combination of strong top-line growth and effective cost management once again drove stronger-than-expected results. According to management, Skechers is seeing increased demand for products across all categories, even as the company diverts focus to new product lines. Furthermore, Skechers expects to see continued growth throughout 2014, with cost containment, inventory management, increased global distribution and rising order backlogs helping to sustain the company’s momentum. Speaking of global distribution, Skechers saw international revenue rise 54% during the second quarter, with the company’s partners in the Philippines, Mexico, Turkey, Taiwan, South Korea, New Zealand, the UAE and Australia experiencing growth. Growth is stellar in Europe and the company is finally starting to gain a foothold in Latin America-another potential hotbed for additional sales. Once again, Skechers is living up to its reputation as the fastest growing shoe company in the world.”
So, you could just buy SKX right here. It might work out okay for you.
But what I really recommend is that you take a no-risk trial subscription to Cabot Top Ten Trader, so that you can Mike’s precise instructions for investing in the stock.
For every stock recommended in Cabot Top Ten Trader, Mike gives a precise buy range, as well as a stop loss for controlling risk. So while you might get lucky doing it on your own, your odds are better if you follow Mike.