NIKE, Inc. (NKE), Skechers USA Inc (SKX) & More: Billionaire Steve Cohen’s SAC Owns 5.1% of This Company

We would compare Skechers USA Inc (NYSE:SKX) to NIKE, Inc. (NYSE:NKE), Deckers Outdoor Corp (NASDAQ:DECK), Wolverine World Wide (NYSE:WWW), and Crocs, Inc. (NASDAQ:CROX). Crocs is the cheapest stock in this peer group, with a trailing P/E of 10, and it too improved its revenue in its last quarterly reported compared to the fourth quarter of 2011. It looks worth considering as a value stock. Deckers does feature both trailing and forward earnings multiples in the teens, but the owner of Ugg and Teva has been experiencing considerably poorer results and a broad bearish community has 41% of the float held short per the most recent data. NIKE, Inc. (NYSE:NKE) and Wolverine are more expensive, trading at 23 and 27 times their trailing earnings respectively. NIKE, Inc. (NYSE:NKE)’s net income was up strongly in its most recent quarter compared to the same period in the previous fiscal year, though revenue growth was more modest. As a result we don’t think that NIKE, Inc. (NYSE:NKE) is a good value right now. Wolverine- which has been acquisitive, and has thus achieved considerable growth- is expected to improve its bottom line considerably over the next couple years with a forward P/E of only 14. It might be worth watching for a quarter or two to see how financials develop.

We don’t recommend imitating this purchase by SAC- Skechers USA Inc (NYSE:SKX) is still well short, even looking at the most recent quarter alone, of how well it needs to do in order to justify its valuation. It and Wolverine are actually in a similar position, and could both be worth reviewing after we’ve seen how well they do in early 2013. Crocs seems like a better value prospect at this time,

Disclosure: I own no shares of any stocks mentioned in this article.