Skechers (SKX) soared 17% on Friday morning, after the footwear company posted mixed earnings with guidance that beat Wall Street expectations.
However, its market cycle point to a near term correction followed by an upside opportunity.
The footwear company reported earnings per share of $0.31 versus $0.23 expected, and total revenue of $10.8 versus $10.1 billion expected. For the current quarter, the company forecast earnings of $0.70-0.75 versus the $0.63 average analyst estimate.
COO David Weinberg explained that,”For the quarter, our growth was fueled by double-digit sales increases in each of our international businesses.”
SKX Cycle Analysis: Our view combines how technical analysis intersects with the stock’s market cycles. For SKX, we can see the stock is still in the rising phase of its current cycle. However, it has now moved into an important resistance zone. We see the expected top at around $35, with a better buying opportunity manifesting after a downside correction into May.
Skechers (SKX) Stock Weekly Chart
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