Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Skechers Stock Looks Ready To Breakout

By MarketBeat.com (Sam Quirke )Stock MarketsMar 17, 2021 02:22AM ET
www.investing.com/analysis/skechers-stock-looks-ready-to-breakout-200567756
Skechers Stock Looks Ready To Breakout
By MarketBeat.com (Sam Quirke )   |  Mar 17, 2021 02:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

With a 7% jump on Monday, shares of Skechers USA (NYSE:SKX) came within a few dollars of breaking out of a long-term range. The iconic shoemaker has watched its shares rally more than 140% in the past year as they’ve undone the damage from last year’s pandemic-induced crash, dollar-by-dollar. Current signs suggest this recovery has room to keep running.

Technically minded investors would do well to keep an eye on them as they approach the double top resistance around the $44 mark, where shares were turned back in 2018 and 2019. Unlike the prior rallies that took shares to that point in the past, this march higher has had a consistent look of strength about it, versus erratic jumps higher.

Fresh Price Target

Only last month UBS (NYSE:UBS) were out with a strong bull call on Skechers stock and upped their price target to $52. Even with the fresh highs seen since then, that’s still suggesting upside of some 25% from last night’s closing price. With the technical setup likely to be flagged on every indicator engine on Main Street, you can be sure that there are plenty of eyes watching to see what the shares will do as they close in on $44.

UBS analyst Jay Sole is particularly bullish on the company’s ability to make the most of the ongoing economic reopening. In a note to clients he said:

"Skechers’ 4Q report was neutral for the stock price as the company's near-term margin commentary weighed on sentiment. However, the current market environment remains very forgiving, in our view.

"We think the market will very soon revisit this stock and see reset FY21 expectations, a business which will improve sequentially throughout CY21, a relatively inexpensive looking valuation, and decide Skechers is still a good reopening stock."

This Q4 report, from early February, had revenue effectively flat on the year which maybe wasn’t the worst result all things considered. To be fair, this isn’t a tech stock we’re talking about but a fairly stolid consumer name that’s fighting hard to get into the 21st century.

Solid Reputation

Unlike the likes of Nike (NYSE:NKE) who have a bit of flash and dazzle about them, Skechers has stayed away from high profile sports sponsorship deals or partnerships with Apple (NASDAQ:AAPL). Instead they’ve focused on building out a solid position in the market for themselves with the reputation for dependable, comfortable shoes that mightn’t be the most stylish or fashionable, but get the job done.

They developed a solid track record of growing revenue and EBITDA year-over-year through last January, and will be forgiven for not keeping that record going through the COVID pandemic. But with the world’s economies closer to getting back to normal than they’ve been yet, odds are Skechers’ management team will be keen to get back to normal operating procedure too. That means consistent results that should flow through to a well-performing stock price.

If shares can maintain their current momentum and test the double top highs of $44 in the next few sessions, it should get interesting. At worst they’ll retreat before likely consolidating for another attempt, a great entry point to consider, or they’ll smash through and leave it behind them as fresh support. Either way it's worth getting SKX onto your watchlist and keeping an eye on it in the coming weeks.

Skechers Weekly Stock Chart
Skechers Weekly Stock Chart

Original Post

Skechers Stock Looks Ready To Breakout
 

Related Articles

Skechers Stock Looks Ready To Breakout

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email