Zumiez reported better-than-expected earnings, and as a result, analysts have been revising the earnings outlook upward. I'm targeting about $37 per share for my exit based on the current earnings forecast. Zumiez rocketed after the earnings announcement, but has been dropping since. I've identified four possible bounce levels; we're already at the first. Scale in at the support lines or watch for a trend line breach to confirm a bounce.
Comment:
Looks like we've fallen through the first support. Also, I just did some quick research and discovered that Zumiez still has a fair amount of China exposure, with something like 40% of their products made in China as of Q2. If new tariffs go into effect on December 15, shoes will be one of the products affected. So I recommend waiting for China trade news before buying Zumiez.
Comment:
I'm up about 10% in ZUMZ. It may pause as it approaches 35.50, so you could sell there and wait for the breakout to re-enter. I do expect the stock to eventually continue higher toward about 37.50.