Footwear Stocks Sprints Higher After Record-Breaking Earnings

The equity is trading at five-year highs

Digital Content Manager
Jul 23, 2021 at 11:16 AM
facebook twitter linkedin


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. 

 

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!