Shares of shoe company Skechers stock have sprinted 23% higher in the last nine trading sessions, a sign of unusual strength. On Tuesday, Skechers stock topped a key benchmark, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 81, up from 70 the day before.
Skechers Stock Just Popped Into Elite Group
The new 81 RS Rating means that Skechers stock is in the top 19% of stocks in terms of stock price performance. It's a milestone rating jump because market research shows that the market's biggest winners typically have an RS Rating of over 80 in the early stages of their moves.
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Manhattan Beach, Calif.-based Skechers makes casual, dress and athletic footwear for men, women and children sold in department store and specialty stores.
Among its other key ratings Skechers has a 74 EPS Rating, of a best-possible 99. Its 75 Composite Rating isn't as strong as its RS Rating but still puts it in the top 25% of stocks on a composite rating of the five key ratings IBD uses. Its C+ Accumulation/Distribution Rating shows that institutional investors have taken notice and are buying slightly more shares than selling.
Skechers Rising Rapidly; Stay Tuned
Skechers stock was on track Tuesday afternoon to hit its sixth higher close in the last nine sessions. It dropped to an intraday low 34.05 on May 24 and it was trading at 42.09 Tuesday afternoon, up 2.2% for the day. Its relative strength line is rising fast and it's above its 50-day line, something few companies can boast of in the wake of the recent market correction. It hasn't formed a definite base pattern yet so now is not an ideal time to invest. See if Skechers stock is able to form a base and break out in strong volume.
Last quarter, Skechers reported 18% year-over-year earnings growth to 80 cents per share. The prior three quarters its EPS rose 267%, 45% and 88%. Sales grew 27% last quarter to $1.82 billion, up from 24% growth the prior quarter.
Skechers stock holds the No. 3 rank among its peers in the Apparel-Shoes & Related industry group. Steven Madden and small cap Weyco Group are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
This exclusive Relative Strength Rating from Investor's Business Daily measures price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
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