Sketchers USA (SKX) Breaking Out

Sketchers, the footwear manufacturer, has been printing money as of late and the stock has rallied nicely over the past 12 months. Most recently, it has traded in a range near its 52 week high but looks to be breaking out once again. Set to release an earnings report towards the end of July, the stock price of Sketchers USA (SKX) could move higher will improved expectations and a moderate price to earnings ratio.

Earlier this month, investors were presented with the companies latest product line of shows, Shape-ups. The stock moved higher shortly after the event held at the company’s Manhattan showroom. Also on the same day the company was presenting their new Shape-ups, they were also announcing an agreement with an Irish distributor to open stores across Ireland beginning in 2010. The agreement is with Shuz 4 U

and will nicely expand worldwide stores over the next 5 years.

Analysts have increased the earning expectations for the company over the past 3 months from 37 cents a share to 41 cents a share. The current quarter is expected to be 415% better than the same quarter last year. Next quarter will be 92% better, roughly, compared to last year. Yet the company’s price to earnings ratio is near 12.5 after trading on Monday. The PEG ratio is at 0.83, which is quite low for a growth company with 174% earnings growth for the year. Revenue is also improving 34.5% growth for the current year.

© 2010 FastSwings.com