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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Ralph Lauren, AMC Networks, Caleres, Steven Madden, and Polaris Shares Are Soaring, What You Need To Know

RL Cover Image

What Happened?

A number of stocks jumped in the afternoon session after the release of stronger-than-expected consumer spending data for August, which pointed to a resilient economy. 

The Bureau of Economic Analysis reported that personal spending rose 0.6% last month, beating estimates and marking the third consecutive month of solid gains. After adjusting for inflation, real spending still increased by a healthy 0.4%. 

This robust consumer activity was accompanied by an in-line inflation report. 

The core Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, met expectations with a 0.2% monthly increase. Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Zooming In On Steven Madden (SHOO)

Steven Madden’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock gained 4.8% on the news that Piper Sandler upgraded the stock to 'Overweight' from 'Neutral' and significantly raised its price target. The investment firm boosted its price target on the shares to $40 from a previous $25. The analyst highlighted an expected significant improvement in the company's EBIT margins, which are a measure of a company's profitability. The firm also pointed to a potential earnings power exceeding $4 per share. According to the note, the stock appeared undervalued based on 2026 earnings estimates. This optimistic view from the analyst arrived even as the company had previously faced headwinds from supply-chain issues that pressured its profitability.

Steven Madden is down 19.9% since the beginning of the year, and at $33.63 per share, it is trading 32.3% below its 52-week high of $49.70 from September 2024. Investors who bought $1,000 worth of Steven Madden’s shares 5 years ago would now be looking at an investment worth $1,715.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

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