Why Skechers (SKX) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - The Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Categories of Style Scores - Value Score: Focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [5] - Growth Score: Evaluates stocks based on future earnings and sales growth potential [6] - Momentum Score: Assesses stocks based on recent price trends and earnings estimate changes [7] - VGM Score: Combines all three Style Scores to highlight stocks with the best overall characteristics [8] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [9] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [12] - Stocks with lower ranks, even if they have good Style Scores, may still face declining earnings forecasts [13] Company Spotlight: Skechers (SKX) - Skechers U.S.A., Inc. is a footwear company with a Zacks Rank of 3 (Hold) and a VGM Score of A [15] - The company has a Momentum Style Score of B, with shares increasing by 16.2% over the past four weeks [16] - Analysts have raised earnings estimates for fiscal 2024, with the Zacks Consensus Estimate now at $4.24 per share, reflecting an average earnings surprise of 8.8% [16][17]