Is It Overvalued? Look at the P/S Ratio: Skechers U.S.A., Inc. (SKX), Pilgrim’s Pride Corporation (PPC)

Skechers U.S.A., Inc. (NYSE:SKX) shares were trading higher by 1.14 percent ($0.3) at $26.7 a piece in Thursday’s session. It had closed the previous session at $26.4. SKX trades with a P/S ratio of 1.15. This is lower than the both industry’s 1.8 and the wider sector’s 4526.35. A low price-to-sales ratio, typically less than 1.0, is considered a good value. Also, it has an estimated price-earnings (P/E) multiple of 13.15 and a trailing 12-month price-earnings (P/E) multiple of 17.3. Shares of SKX have uptrended 3.77% in the past three months, while the industry overall has moved -1.16% in that time. Skechers U.S.A., Inc. (NYSE:SKX) has a market cap of $4.2 billion and over the last 12 months, SKX has gone weaker by -12%. During the last 52 weeks, the SKX price has been as high as $32.71 and as low as $18.81. Skechers U.S.A., Inc. (SKX) earnings have risen with an annualized rate of 40% over the last 5 years.

The average 1-year price target for Skechers U.S.A., Inc. (NYSE:SKX) — averaging the work of different analysts — reveals a mean PT of $30.4/share. That’s a potential 13.86 increase relative to where SKX has been trading recently. The current price is seen ranging between $26.21 and $26.85. There are brokerage firms with lower targets than the average, including one setting a price target of $25. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $35.

The collective rating of 2.1 for Skechers U.S.A., Inc. (SKX) also leans strongly towards the neutral end of the spectrum. Of the 12 analysts surveyed by Reuters that track SKX 4 of them rate its stock a hold. The other 8, though not evenly; between analysts who think you should buy Skechers U.S.A., Inc. (NYSE:SKX) versus those who think you should sell it. A 8 analysts rate it as either a buy or a strong buy, while0 believe that investors should either steer clear of Skechers U.S.A., Inc. (NYSE:SKX) or, if they already own its stock, sell it.

Pilgrim’s Pride Corporation (NASDAQ:PPC) pulled off a 1.15 percent gain and now trades for $24.59. PPC comes in with a P/S ratio of 0.77 that’s below 1, potentially implying that it could be cheap relative to the overall sector (6.5) and its peers (1.88). Also, it has an estimated price-earnings (P/E) multiple of 11.28 and a trailing 12-month price-earnings (P/E) multiple of 14.95. During the last 52 weeks, the price has been as high as $26.22 and as low as $17.15. Pilgrim’s Pride Corporation (NASDAQ:PPC) earnings have risen with a quarterly rate of 1% over the last 5 years. Shares of Pilgrim’s Pride Corporation (PPC) have increased 16.54% in the past three months, while the S&P 500 has gained 12.75% in that time.

Pilgrim’s Pride Corporation (NASDAQ:PPC) has a market cap of $6.14 billion and over the last 12 months, PPC has risen by 0.99%. The average 1-year price target for Pilgrim’s Pride Corporation (PPC) reveals an average price target of $27.67 per share. That’s a potential 12.53 gain from where PPC has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $22. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $35.

The consensus recommendation — averaging the work of 7 analysts — of 2.6 for Pilgrim’s Pride Corporation (NASDAQ:PPC) points to moderate case. Of the analysts surveyed by Reuters that track Pilgrim’s Pride Corporation (PPC), 5 of them rate its stock a hold. The other 2 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 2 analysts rate it as either a buy or a strong buy, while 0 believe that investors should either steer clear of PPC or, if they already own its stock, sell it.