5 Best Stocks to Buy Under $50

3. Skechers U.S.A., Inc. (NYSE:SKX)

Stock Price as of May 27: $39.24

Number of Hedge Fund Holders: 28

Skechers U.S.A., Inc. (NYSE:SKX) is a California-based footwear brand. It is the third biggest athletic footwear brand in the world, with over 4,300 Skechers-branded stores globally. This is nearly four times higher than the global retail stores of athletic footwear giant NIKE, Inc. (NYSE:NKE). Although having a bigger store network results in higher expenses, it is very useful in the fragmented apparel and footwear industry.

Analysts are bullish on the stock as Gabriella Carbone at Deutsche Bank increased the price target on Skechers U.S.A., Inc. (NYSE:SKX) from $62 to $64 on April 27. While maintaining a Buy rating on the stock, the analyst highlighted that the company is experiencing strong top-line growth across all regions, which made it raise its full-year guidance.

Pzena Investment Management is the leading investor in Skechers U.S.A., Inc. (NYSE:SKX), with a stake worth around $281.44 million as of March 31. The hedge fund increased its holdings in the company by 43% sequentially.

Fiduciary Management shared its stance on Skechers U.S.A., Inc. (NYSE:SKX) in its Q1 2022 investor letter. Here’s what the firm said:

“Skechers is the third largest footwear brand in the world. The company designs, manufactures, and distributes footwear for men, women, and children in U.S. and international markets. Its products cover a wide range of footwear categories including casuals, dress casuals, sandals, boots, work boots, performance footwear, and kids footwear. The company operates in three business segments: Domestic Wholesale (23% of sales), International Wholesale (48% of sales), and Direct-to-Consumer (29% of sales). In total, international sales account for approximately 60% of revenue…” (Click here to see the full text)