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.
Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
The Motley Fool owns shares of SKECHERS USA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Up 54% in 2017, Skechers Stomps Out a Solid Year
What a difference a year can make!
These 3 Stocks Grew 20% in 2017, and They Aren't Slowing Down
One of America's biggest banks, China's leading social media darling, and a growing shoe company make the list.
Better Buy: Nike vs. Skechers
The first question investors will need to answer is whether they prefer stability or growth in their sneaker stocks?