3 best-performing consumer goods stocks so far in 2015

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3 Best-Performing Consumer Goods Stocks So Far in 2015

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3 Best-Performing Consumer Goods Stocks So Far in 2015

What do these stocks have in common?

• Skechers, Amazon, and Sturm Ruger & Co. operate vastly different businesses. Yet, they all share a wild track record of success so far in 2015, with each stock having gained more than 65% year-to-date.

• Skechers leads the charge, with its stock climbing more than 122% so far this year.

1. Skechers

• 3 things have driven Skechers’ impressive growth this year: its popularity with tweens and millennials, international sales growth, and double-digit increases in its wholesale business.

YTD Gain: 122.64%

Skechers steals Nike’s Playbook • Similar to Nike,

Skechers is tapping big-time celebrities for endorsement deals. Grammy-nominated performer Meghan Trainor recently signed a two-year global marketing campaign with it.

A promising growth story

Skechers captured 40% net sales growth in its first quarter, driven by strong sales of its kids shoes. Skechers offers more affordable tweens’ kicks compared to rivals like Nike, which has helped it gain share of the lucrative kids’ market. Double-digit gains in its domestic and international wholesale businesses are also fueling results these days.

Skechers stock topped $100 this year for the first time in the company’s history.

Skechers valuation… Time to buy?

The stock is trading near highs north of $145 per share. However, the retailer’s manageable debt levels, robust revenue growth and strong product pipeline going forward make it an attractive investment for long-term investors. Skechers should also see a near-term pop thanks to the upcoming back-to-school shopping season.

Skechers looks pricey at first glance, trading near a 52-week high.

2. Amazon

• Amazon’s stock surged more than 10% in July after the e-commerce giant reported record second-quarter results.

YTD gain: 70.59%

Amazon shows investors the money

The e-commerce giant’s market cap soared to a record $247.6 billion in July, following the company’s surprise Q2 profit. The highlights from the quarter included: a 20% bump in revenue to $23.2 billion, and a quarterly profit of $0.19, which was better than analysts’ predictions for a loss of $0.14 per share in the quarter.

Amazon has officially outshined Wal-Mart as the world’s biggest retailer by market value.

Diversifying its revenue stream • Amazon is more than an online

retailer. Its Web Services business is booming, with upward of 1 million active customers, and its public cloud computing platform now has more than 4 times the computing capacity of the next 14 largest providers combined, according to Morningstar.

Amazon valuation… Time to buy?

Shares of Amazon are trading around $534 apiece. With a forward P/E of 184, the stock looks expensive based on traditional valuation metrics. It seems investors are paying up now for Amazon’s potential future sales. Therefore, if you don’t yet own the stock, you may want to wait for a pullback before jumping in.

Amazon’s stock is currently trading near the high end of its 52-week range.

3. Sturm Ruger & Co.

• As a purveyor of American-made guns and firearms, Sturm Ruger may be a “sin” stock but at least it is one that will look good in your portfolio.

YTD gain: 66.93%

Sturm Ruger delivers solid results

Sturm Ruger generated $80 million in cash from operations during the quarter. That’s a win for investors, particularly coupled with the company’s debt-free balance sheet. Moreover, background checks on gun sales increased more than 10% in June over the prior year. This is important because background checks are often used by the firearms industry to gauge consumer sentiment.

The gun maker delivered strong Q2 earnings of $0.91 per share, ahead of expectations for $0.78 per share.

Sturm Ruger valuation… Time to buy?

Shares of Sturm Ruger are currently trading around 38 times earnings, above the industry average P/E of 27. This indicates the stock is slightly overvalued. Also, earnings may have topped expectations for the latest quarter, however they were nonetheless down 19% year-over-year – signaling slowing growth. For this reason, investors may want to remain on the sideline for now.

The stock is trading near its 52-week high at around $63 per share.