Footwear Stocks Sprints Higher After Record-Breaking Earnings

The equity is trading at five-year highs

Deputy Editor
Jul 23, 2021 at 11:16 AM
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The shares of footwear brand Skechers USA Inc (NYSE:SKX) are climbing higher this morning, last seen up 5.3% at $53.91 after its second-quarter earnings and revenue set a new record and topped analysts' estimates. Skechers' gross margin also hit a record high, despite issues with shipment delays and other pandemic-related headwinds. On top of this, the firm lifted its 2021 forecast 

No less than eight analysts lifted their  price targets, including UBS, which lifted its price target to $70 from $61. The 12-month consensus price target now stands at $63.16 -- an 18% premium to current levels. Analysts were optimistic on SKX coming into today. Of the eight in coverage, six called it a "buy" or better. 

Today's pop has SKX gapping to a fresh five-year high of $55.87 and toppling pressure at the $52 level. The equity enjoyed a major bull gap during its last earnings report in April, too, and has since found its footing at the $45 level, which previously acted as a ceiling on the charts. 

Options traders are coming out in droves, with 8,815 calls and 2,395 across the tape so far today -- 18 times the intraday average. The most popular by far is the weekly 7/23 55-strike call, followed distantly by the 51.50-strike put in the same monthly series, with positions being opened at the former. 

 

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