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Has Skechers U.S.A. (SKX) Outpaced Other Consumer Discretionary Stocks This Year?


For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Skechers U.S.A. (SKX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of SKX and the rest of the Consumer Discretionary group’s stocks.

Skechers U.S.A. is a member of our Consumer Discretionary group, which includes 250 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. SKX is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SKX’s full-year earnings has moved 3.09% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.

Our latest available data shows that SKX has returned about 42.33% since the start of the calendar year. In comparison, Consumer Discretionary companies have returned an average of 10.66%. This means that Skechers U.S.A. is performing better than its sector in terms of year-to-date returns.

Looking more specifically, SKX belongs to the Shoes and Retail Apparel industry, which includes 13 individual stocks and currently sits at #51 in the Zacks Industry Rank. This group has gained an average of 13.29% so far this year, so SKX is performing better in this area.

SKX will likely be looking to continue its solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to the company.

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