5 Best Fitness and Gym Stocks To Buy Now

In this article, we discuss 5 best fitness and gym stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Fitness and Gym Stocks To Buy Now. 

5. Skechers U.S.A., Inc. (NYSE:SKX)

Number of Hedge Fund Holders: 36

Skechers U.S.A., Inc. (NYSE:SKX) designs, markets, and sells footwear for men, women, and children worldwide. It offers casual athletic, sport athletic, and retro fashion footwear for men and women under the Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Foamies, Mark Nason, and BOBS brands. It is one of the best fitness stocks to invest in. On February 2, Skechers U.S.A., Inc. (NYSE:SKX) reported a Q4 non-GAAP EPS of $0.48 and a revenue of $1.88 billion, outperforming Wall Street estimates by $0.11 and $110 million, respectively. 

On March 29, UBS maintained a Buy rating on Skechers U.S.A., Inc. (NYSE:SKX) but decreased the price target on the shares from $69 to $60. UBS has become more negative towards softlines stocks and has lowered its calendar 2023 EPS estimates for all the stocks it covers by an average of 10%. Consequently, its 2023 EPS estimates are now 13% lower than the consensus for the typical stock in this sector, according to the firm.

According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on Skechers U.S.A., Inc. (NYSE:SKX), compared to 35 funds in the prior quarter. Richard S. Pzena’s Pzena Investment Management is the largest stakeholder of the company, with 7.5 million shares worth $315.5 million. 

Meridian Growth Fund made the following comment about Skechers U.S.A., Inc. (NYSE:SKX) in its Q4 2022 investor letter:

“Skechers U.S.A., Inc. (NYSE:SKX), designs and sells lifestyle and athletic footwear. It is the third-largest footwear company in the U.S. and has a strong and growing international presence. In our view, the market does not fully recognize the growth opportunity represented by Skechers’ international business. During the quarter, the company reported strong gains worldwide, led by a 48% increase in sales in the EMEA region and a 9% rise in the APAC region despite COVID-related slowdowns, as well as 16% growth in the Americas, powered by healthy demand in the U.S. and Canada. The company is still contending with some expense issues, primarily related to ongoing supply chain and distribution channel challenges, but investors are increasingly recognizing management’s success at managing through the issues and setting the company up for potentially strong cash flow growth in 2023. Amid the growing optimism, we maintained our position in the stock.”