#7 - Skechers (NYSE:SKX)
There must be something about footwear because the last company on our list of consumer discretionary stocks is Skechers (NYSE:SKX). The stock is up 88% since the onset of the pandemic. However, since the beginning of the year SKX stock is down 8%. That’s a little puzzling because the company scored a double beat in its latest earnings report.
It might have to do with the company’s decision to suspend all shipments to Russia in response to the country’s invasion of Ukraine. With the war showing no signs of ending soon, this could be a headwind on the company for an unknown length of time. However, if you have a long-term timeline, SKX stock could be a worthwhile investment. The recent sell-off has pushed the P/E ratio of the stock below 10 which makes the stock more attractive from a fundamental perspective.
About Skechers U.S.A.
Skechers U.SA, Inc designs, develops, markets, and distributes footwear for men, women, and children worldwide. The company operates through Wholesale and Direct-to-Consumer segments. It offers footwear under Skechers Hands Free Slip-ins, Skechers Arch Fit, and Skechers Air-Cooled Memory Foam brands.
Read More - Current Price
- $69.64
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $78.42 (12.6% Upside)
We believe that every stock on this list has a chance to defy expectations in 2022. And as we stated in the introduction, this is a time when it will pay for investors to be very, very selective. But if fund investing is more your style, we can recommend the Consumer Discretionary Select Sector SPDR ETF (NASDAQARCA:XLY). The XLY fund is down 14% for the year and is down about 1% over the last 12 months.
One reason for that is that it contains 60 securities and some of them are in areas such as automobiles and hotels that may continue to underperform the market for quite some time. However, it is the largest and most popular ETF of its kind with over $20 billion of assets under management (AUM) and an average daily trading volume of over 11.5 million shares.
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