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 footwear company Crocs (NASDAQ:CROX) stomped higher by as much as 11% after Goldman Sachs initiated coverage on the company with a "buy" rating.
So what: Research firm Goldman Sachs had a field day in the footwear sector today, initiating both Crocs and Foot Locker (NYSE:FL) at "buy," Finish Line (NASDAQ:FINL) and UGG maker Deckers Outdoor (NYSE:DECK) at "hold," and Steven Madden (NASDAQ:SHOO) at "sell."
Now what: As I always say, before you get too excited about an analyst upgrade, don't, because they're short-term events that have little bearing on the long-term outlook of a company. Crocs has been battling becoming a fad for quite some time, and it's introduced new styles to help reduce its business cyclicality. On the other hand, footwear companies like Deckers Outdoor have been dealing with higher costs and weak international demand, which doesn't bode well for much of the sector. I don't see today's move higher as much of a reason to be excited about Crocs.
Craving more input? Start by adding Crocs to your free and personalized Watchlist so you can keep up on the latest news with the company.