Why Skechers' Shares Popped (SKX)

Why Skechers' Shares Popped

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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.

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