Why Skechers' Shares Popped

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 shoemaker Skechers (NYSE: SKX  ) jumped 10% today after being upgraded by an analyst.

So what: Susquehanna analyst Tom Haggerty upgraded the stock to positive from neutral on projections of improving sales next year. The analyst set his price target at $22 per share for the next year.

Now what: We don't put too much stock in an analyst's upgrade or downgrade because the pop or drop often doesn't last long. Skechers has had a rough 2012 and is likely to post a loss for the year. A lot of improvement needs to take place in 2013 for it to swing to a profit, and that's just too much risk for me to buy into today, especially after the stock jumped.

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


Read/Post Comments (0) | Recommend This Article (1)

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: 2123703, ~/Articles/ArticleHandler.aspx, 10/20/2014 11:53:09 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