All You Need to Know About Skechers (SKX) Rating Upgrade to Buy

Core Viewpoint - Skechers (SKX) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [6][7][17]. Earnings Estimates and Revisions - Analysts have raised their earnings estimates for Skechers, with the Zacks Consensus Estimate increasing by 1.9% over the past three months [10]. - For the fiscal year ending December 2024, Skechers is expected to earn $4.24 per share, reflecting a 21.5% increase from the previous year's reported number [15]. Zacks Rating System - The Zacks rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [9]. - The upgrade of Skechers places it in the top 20% of Zacks-covered stocks in terms of estimate revisions, suggesting potential for near-term stock price increases [5][17]. Market Impact - Rising earnings estimates and the corresponding rating upgrade imply an improvement in Skechers' underlying business, which could lead to higher stock prices as investors respond positively [8][12]. - The correlation between earnings estimate revisions and near-term stock movements is strong, making it beneficial for investors to track these revisions for investment decisions [14].