Find out what these two stock analysts think of Skechers stock.

Skechers USA Inc. (NYSE: SKX) has stayed in stride with the latest trends for the last eight years. The word "skechers" is street slang for "can't stand still," and that strategy has worked to the company's advantage so far. Can the stock stop you in your tracks long enough to invest?

1. Skechers is set to launch the Avirex men's footwear line this spring. Creating partnerships with popular apparel labels gives the company staying power.
2. Footwear Plus magazine's 8th annual Plus Awards acknowledged Skechers as the 2006 Company of the Year--the first company to win two years in a row.
3. By the end of 2006, Skechers had an increase in net sales of 19.8 percent and an increase in net earnings of 58.8 percent, over 2005.
4. There was a nearly 20 percent increase over the previous year's gross profit to $523.3 million in 2006.
5. Skechers' five-year expected PEG ratio is 0.83, suggesting it will be an undervalued company. Analysts usually give undervalued stock a "strong buy" rating.

1. As a part of the textiles and apparel industry, Skechers is at the mercy of fashion trends--a precarious position.
2. Skechers' founder Robert Greenberg was behind L.A. Gear, the shoe company that hit $820 million in sales in 1990, but posted a $66.2 million loss in 1991.
3. Skechers is among the youngest of the publicly traded shoe companies. Without as much history, forecasts can be less reliable.
4. Skechers' beta coefficient of 2.51 makes them 151 percent more volatile than the market as a whole. Timberland's beta rests at 1.77, while Nike's sits at 0.88.
5. Skechers' price-to-cash flow ratio is 42.9, compared to the industry average of 17.7.

Skechers sells trendy footwear, from sneakers to dress shoes, geared toward 12- to 24-year-olds. The shoes can be found almost everywhere, including department stores and skechers.com. Find out if the stock is as eye-catching as the shoes.

1. Skechers' net sales grew 9.4 percent in 2005, and almost 20 percent in 2006. It's obviously growing.
2. Savvy marketing sells more shoes: Celebrities like Christina Aguilera and Rick Fox help capture fashion-sensitive young girls and guys.
3. Skechers shoes carry high margins: They are relatively inexpensive to make in China, and sell for a much higher price in the U.S. and around the world.
4. Some large and well-respected corporations own shares in the company. FMR Corporation, better known as Fidelity, owns over 5 percent of Skechers' stock.
5. The company is actively looking to license out the Skechers brand name to generate royalties on accessories.

1. This stock is expensive with a trailing P/E ratio of 22.16.
2. In a lawsuit that could harm Skechers' reputation for being original, the sporting goods company Asics alleges that certain Skechers styles are too similar to their own.
3. Company insiders own only about 1 percent and continue to sell shares.
4. The cost of living is rising, meaning that both parents and kids will start to spend less on clothing. Shoes aren't usually linked to discretionary income, but having the latest style might become less crucial for consumers.
5. Skechers is trading near an all-time high. It may have reached its limit, at least for a little while.

Editor's Note: brass is a quarterly publication, and as such, there could be significant information, news, or price changes that may differ from resources available at the time this article was written. All analysis is meant for educational purposes. You should not make decisions based on information contained in brass without the advice of a qualified professional advisor.

Sources: finance.yahoo.com; investopedia.com; biz.yahoo.com; fool.com; businessweek.com; money.cnn.com; forbes.com; skx.com; footwearplusmagazine.com; skechers.com; sec.edgar-online.com; bls.gov; finance.google.com