Pacific Sunwear Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of teen fashion retailer Pacific Sunwear (Nasdaq: PSUN  ) popped 8% in intraday trading today on no apparent news.

So What: Your guess is as good as mine as to why there’s sudden, spiking interest in this teen retailer’s shares. The retail landscape’s fraught with difficulties these days, and Pacific Sunwear has reported dwindling sales and posted annual losses for the last two fiscal years, and annual comps for the year ended January 2010 plunged a nauseating 20%.

Now What: Investors should avoid becoming infected with unsubstantiated bullishness about Pacific Sunwear shares right now. It faces formidable competition in the teen retail space from companies like Abercrombie & Fitch (NYSE: ANF  ) , Zumiez (Nasdaq: ZUMZ  ) , Aeropostale (NYSE: ARO  ) , and Buckle (NYSE: BKE  ) , just to name a few. If there’s no apparent reason why Pacific Sunwear’s popping today, following suit and snapping up shares may be an unreasonable move investors could come to regret.

Interested in more info on Pacific Sunwear? Add it to your watchlist here by clicking here.

Zumiez is a Motley Fool Hidden Gems choice. The Fool owns shares of Aeropostale. Try any of our Foolish newsletter services free for 30 days.

Alyce Lomax does not own shares of any of the companies mentioned. The Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1345398, ~/Articles/ArticleHandler.aspx, 10/25/2014 3:29:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement