Eyes On Skechers USA (SKX): Highlighted Storm The Castle Stock
Trade-Ideas LLC identified
(
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Skechers USA as such a stock due to the following factors:
- SKX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.6 million.
- SKX has traded 551,732 shares today.
- SKX is trading at 2.57 times the normal volume for the stock at this time of day.
- SKX crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on SKX:
Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women under the Skechers GO brand name worldwide. SKX has a PE ratio of 17. Currently there are 6 analysts that rate Skechers USA a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Skechers USA has been 2.7 million shares per day over the past 30 days. Skechers USA has a market cap of $4.9 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.16 and a short float of 10.6% with 5.10 days to cover. Shares are up 3% year-to-date as of the close of trading on Monday.
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Analysis:
rates Skechers USA as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 27.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SKX's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SKX has a quick ratio of 2.09, which demonstrates the ability of the company to cover short-term liquidity needs.
- SKECHERS U S A INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SKECHERS U S A INC increased its bottom line by earning $1.50 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($2.11 versus $1.50).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 74.0% when compared to the same quarter one year prior, rising from $56.08 million to $97.61 million.
- You can view the full Skechers USA Ratings Report.
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