Advertisement
New Zealand markets close in 1 hour 22 minutes
  • NZX 50

    11,753.65
    -29.74 (-0.25%)
     
  • NZD/USD

    0.6129
    +0.0005 (+0.09%)
     
  • NZD/EUR

    0.5647
    +0.0009 (+0.15%)
     
  • ALL ORDS

    8,054.10
    +54.90 (+0.69%)
     
  • ASX 200

    7,784.30
    +56.70 (+0.73%)
     
  • OIL

    77.99
    +0.27 (+0.35%)
     
  • GOLD

    2,347.90
    +13.40 (+0.57%)
     
  • NASDAQ

    18,808.35
    +184.95 (+0.99%)
     
  • FTSE

    8,317.59
    -21.64 (-0.26%)
     
  • Dow Jones

    39,069.59
    +4.29 (+0.01%)
     
  • DAX

    18,693.37
    +2.07 (+0.01%)
     
  • Hang Seng

    18,682.86
    +73.92 (+0.40%)
     
  • NIKKEI 225

    38,758.96
    +112.85 (+0.29%)
     
  • NZD/JPY

    96.0280
    -0.0580 (-0.06%)
     

Brian's Big Idea On Shoes

Sometimes we forget to put one foot in front of the other but most of the time when we go outside for a walk we put on a pair of shoes. You consumers buy lots of shoes and there are lots of shoe companies to look at as investment vehicles and this week we are taking a look at three names and one that has had some insider buying over the past few months.

First up is Nike NKE which is a Zacks Rank #3 (Hold) and supports a nice growth divergence with an A for growth and an F for value. As the aggressive growth stock strategist at Zacks Brian Bolan is always looking for stocks that are growers. The growth divergence, meaning a strong growth score and a weak value score tells him he is on the right path.

Brian reviews the forward earnings multiple and growth prospects for Nike NKE at notes that it will have a CEO transition in the coming year and the potential for a new product launch or aggressive marketing spend should be a tailwind for the stock. That said, the stock trades at a 25x forward earnings multiple and recently posted 0.3% topline growth.

A competitor to Nike NKE is On Holdings ONON which is also a Zacks Rank #3 (Hold) and also has the growth divergence that he loves to see. ONON trades at 38x forward earnings but has shown some solid growth in the most recent quarter with sales increasing 32.5% from they year ago period.

ADVERTISEMENT

Finally Brian takes a look at Skechers SKX which is a Zacks Rank #3 (Hold) and has a B for Value and an A for Growth. SKX has a much smaller market capitalization than the other two stocks that were profiled and has a much better valuation. With a forward earnings multiple of 14.7x, SKX looks cheap in comparison to the other stocks. The same could be said for the price to book multiple as well with SKX trading at just about 2x book value while the other two trade much higher on price to book basis.

Skechers SKX has seen some insider buying over the last several months and Brian talks about how insider selling happens all the time but insider buying is what investors should pay attention to. These are the people that are running the business in see in great detail what is really happening so when they invest their money into the stock it is often a great signal.

Insider Trader is a service run by Tracey Ryniec and she looks for the best stocks that have insider buying and combine that with a solid Zacks Rank in order for investors to have the best opportunity for positive returns. Skechers SKX Happens to be in the portfolio which happens to own 11 other stocks as well.

As one of the trading services at Zacks Investment Research, insider trader gives you and nightly e-mail discussing the important topics of the broader market and also then commentary on any news or important events happening to any of the companies in the portfolio. Tracey will even give stock weighting recommendations for the stocks she selects for the service. Insider Trader is definitely worth a deeper look.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NIKE, Inc. (NKE) : Free Stock Analysis Report

Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report

On Holding AG (ONON) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research