Why I Think Skullcandy Is a ‘Buy’
Let’s talk about Skullcandy (NASDAQ:SKUL).
They beat the Street in each of the last few quarters. (A little bit less each quarter.) But I must tell you, the day the market was down 300 points, they beat. The stock should be up, but they're not. I think this is your chance to get in.
Fiscal year ’15 and ‘16 earnings’ estimates have been going up really nicely. In the latest earnings report, revenues were up 34%, earnings per share were up 100%, operating margins went to 10.4 from 7.4. Last year, they became number one in headphone units sold.
Technically, it is holding above the 50-day moving average. I love that -- a break out of $11.15. Ultimately, I think it could be a $15 stock.