Sell: Skechers USA Inc. (SKX)
Updated from Wall Street’s Best Investments 805, May 16, 2018
I’m retiring Skechers USA Inc. (SKX) from the Buy Low Opportunities Portfolio today. Earnings growth is projected to be moderate, and the stock is fairly valued. The big problem is that at a share price of 34.09, the stock is up 55% from its December low. It’s way overdue for a pullback. I’d rather remove SKX now and add a more undervalued growth stock to the portfolio, than hold SKX through what will likely be an extended period of consolidation. For now, SKX continues to rise. There’s strong price resistance at 38. Retired.**
**As a reminder, Retired means I’m removing the stock from the portfolio due to less attractive nuances in earnings growth, valuation, news and/or price charts. Sell means that I don’t think anybody should own the stock, due to at least one major problem. I differentiate the two because there are investors who become paralyzed at the idea of making sell decisions. I want to help you make that decision by emphasizing my degree of concern about the stock.
Crista Huff, Cabot Undervalued Stocks Advisor, www.cabotwealth.com, 978-745-5532, February 26, 2019