Sketchers (SKX): A hot idea for Peter Lynch or Ken Fisher

Filed under: Newsletters, Stocks to Buy

"Skechers USA (NYSE: SKX), a trendy California-based retailer, is a new buy recommendation on our 'hot list'," says John Reese, who selects stocks based on the criteria used by several legendary stock pickers.

In his always-fascinating Validea newsletter, the advisor explains, "Skechers gets approval from two of my guru-based strategies, those that I base on the writings of Peter Lynch and Kenneth Fisher." Here is his review.

"My Lynch-based model considers the firm to be a 'fast-grower' because of its 23.08% long-term growth rate (based on the average of the three- and five-year earnings per share figures).

"Lynch was perhaps best known for using the P/E/Growth ratio, which divides a stock's price/earnings ratio by its growth rate to identify growth stocks that are still selling at a good price.

"P/E/Gs below 1.0 are acceptable