In this article, we discuss 5 best sporting goods stocks to buy. If you want to read our detailed discussion on the sporting goods industry, head over to 11 Best Sporting Goods Stocks To Buy Now.
5. Skechers U.S.A., Inc. (NYSE:SKX)
Number of Hedge Fund Holders: 40
Skechers U.S.A., Inc. (NYSE:SKX) is a global footwear company that specializes in designing, developing, marketing, and distributing a wide range of footwear for men, women, and children. Their products include casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear. Skechers U.S.A., Inc. (NYSE:SKX) is one of the top sporting goods stocks to invest in.
On April 27, Skechers U.S.A., Inc. (NYSE:SKX) reported a Q1 GAAP EPS of $1.02 and a revenue of $2 billion, exceeding Wall Street estimates by $0.41 and $130 million, respectively. The company is optimistic about its performance in fiscal year 2023, expecting sales to range from $7.9 billion to $8.1 billion, an increase from the previous guidance of $7.75 billion to $8 billion. The consensus revenue estimate is $8 billion. Similarly, Skechers U.S.A., Inc. (NYSE:SKX) projects its diluted earnings per share for fiscal year 2023 to fall between $3.00 and $3.20, which is higher than the earlier guidance of $2.80 to $3.00. The consensus EPS estimate stands at $2.99.
According to Insider Monkey’s first quarter database, 40 hedge funds were bullish on Skechers U.S.A., Inc. (NYSE:SKX), compared to 36 funds in the earlier quarter. Richard S. Pzena’s Pzena Investment Management is the largest stakeholder of the company, with approximately 6.2 million shares worth $294.4 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.”
